Sebi move on MF holdings: UTI Mutual Fund may become a foreign fund house

The new Sebi rule creates a possibility of UTI becoming a foreign fund house if T Rowe itself decides to buy from others

The Securities and Exchange Board of India (Sebi) has last week laid down the rules governing the same sponsor holding shares in more than one fund house.

One common implication that has been widely discussed is the impact the rule would have on UTI Mutual Fund, the country’s first and oldest house.

Second is the implication on other fund houses.

Let us discuss both. Firstly, the move, assuming it is religiously followed by the public sector biggies such as State Bank of India, Life Insurance Corp, Bank of Baroda and Punjab National bank, is of such nature that the UTI