UTI to be split into three, no strategic partner for now

new delhi: the government has finalised a three-tier structure for the unit trust of india as part of its corporatisation. at the core of this proposal, which would be taken to the cabinet soon, lies the repeal of the uti act and the replacement of the existing trust with a new three-tier arrangement. finance ministry officials would meet this week to chart out the future course of uti, sources said. at the apex of the new structure would be a company, which in turn would set up a trust and an asset management company (amc). the trust would be accountable to the public from whom it raises the funds. the amc would manage the assets of the trust and would be answerable to the board of trustees. according to government sources, the existing contributors to the trust would be the stakeholders in the new company and would have representation on the board of trustees. the government is not concentrating on bringing in a strategic partner at this stage. “induction of a strategic partner is not critical to uti restructuring,� senior finance ministry sources said, “it could always be done at a subsequent stage.� the privatisation of uti by inducting a strategic partner was recommended by the malegam committee.