McKinsey to recast UTI operations

August 2: Information kiosks and satellite offices are to be established to educate investors and make UTI more accessible. ``Our prime f...

August 2: Information kiosks and satellite offices are to be established to educate investors and make UTI more accessible. “Our prime focus will be the small investor. The objective of the reorganisation is to prepare Unit Trust as the organisation of the millennium,” the UTI chairman said.

UTI will be making a special effort to mobilise more funds from the South. This region contributes 13 per cent to UTI’s overall business, said Subramanyam. “The fact that so many dubious operators flourished in the financial sector in this region proves that investors here are not so prudent with their savings,” Subramanyam said.

He said that UTI’s proposed millennium fund had been deferred owing to declining gold prices in the global market.

Story continues below this ad

On UTI seeking a place on the board of companies, Subramanyam said the whole idea was mooted to improve corporate governance and shareholder value. Better governance will reduce the cost of capital for corporates. Besides, FIIs will be able to look at a broad spectrum of companies for investment and not limit themselves to half a dozen scrips.

Subramanyam said that UTI had already implemented nine recommendations made by the Deepak Parekh Committee set up to review the structure of US-64. The committee has made 19 recommendations in all.