The Unit Trust of India (UTI), on which the Joint Parliamentary Committee (JPC) report has dwelt in great detail in its report on the 2001 stocks scam, is expected to move ahead with the implementation of some of the recommendations of the panel as early as possible. The UTI board meets on Monday to discuss accounts, but will also be briefed on the JPC findings and suggested action.“The board will be briefed on the basic recommendations of the JPC. Thereafter, it may decide on the course of action to be followed,” a top UTI official said a day after the JPC report was tabled in Parliament.Much of the JPC’s observations on UTI deal with the lacunae in the systems which were followed by the Trust in its investment decisions and dealing room procedures. The JPC had also criticised the excessive concentration of powers in the hands of the chairman of UTI and the role of the trustees. It had also discussed the influence of the Industrial Development Bank of India (IDBI) on UTI.“Whatever is within the ambit of UTI and can be implemented will be looked into for implementation. Some other matters are for the government to look into,” an official said.The JPC report has also called for a departmental vigilance inquiry to be initiated in UTI regarding the decisions where the equity research cell’s (ERC) views have not been taken or the ERC’s views have been overruled, to ascertain whether the decisions were taken after following proper procedures or were arbitrarily made without due diligence.JPC has also recommended suitable action against the officials who are found to have indulged in arbitrary decision-making. It has called for a delegation of authority and a comprehensive investment policy. Recently, after the change at the top at UTI in August 2001, a number of new initiatives have been taken to clean up the system, including more transparent and broadbased decision-making and lesser concentration of powers with the chairman.The JPC has also recommended that the Advisory Board on Bank, Commercial and Financial Frauds which is looking into UTI’s investment decisions in 19 companies expeditiously take a final decision on these. This apart, it has recommended that the procedure recommended by the Tarapore Committee on UTI be adopted for the remaining 70 cases, as this it said meets the ends of natural justice.UTI officials said all these issues would be taken up shortly within UTI, with a view to crystallising a view on the steps which are required to be taken over the next few days. The JPC report has also outlined a series of steps for the future functioning of UTI.
