UTI MF's public shareholders seek time to meet cross-holding norm

The market regulator may not give blanket exemption and could ask the sponsors for partial divestment by March next year

The four public shareholders of UTI Asset Management Company (AMC) have sought more time to comply with Securities and Exchange Board of India’s (Sebi’s) 10 per cent cross-shareholding norm, the deadline for which is to end in March.

According to sources, the investors have requested a year’s extension from the market regulator.

Under the cross-shareholding norms, a single entity cannot hold more than 10 per cent in more than one AMC. The rules are to prevent potential conflict of interest and strengthen the governance structure of mutual funds.

The four Indian principal sponsors of UTI AMC – Life Insurance Corporation (LIC), State Bank