UTI MF staff get compulsory leave

In the first instance of its kind in a public sector outfit, UTI Mutual Fund has implemented a policy of asking its staffers to go on compul...

In the first instance of its kind in a public sector outfit, UTI Mutual Fund has implemented a policy of asking its staffers to go on compulsory leave for a fixed period of time in a year as a risk mitigation measure. The move is in line with that followed by a number of foreign banks and institutions.

Confirming this, UTI Mutual Fund CMD M. Damodaran said that the move was taken after a thorough review of risks by UTI MF’s new risk management department, since it was felt that officials, particularly those manning sensitive positions, needed to go on compulsory leave so that others can step in and understand the functioning of those departments. This would automatically reduce risks and vested interests.

“My turn to go on leave also is coming up any day now,” Damodaran said.

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In early February, UTI MF first put out its compulsory leave policy, restricting it to only those manning what it called ‘sensitive posts’. However, following a review, UTI MF later broadbased the policy to cover all staffers, irrespective of their designation/department. The staffers, under this policy, are asked to take leave for at least 10 working days (excluding Saturday, Sunday and holidays) in a calendar year, in a continuous spell. “It effectively works out to about a fortnight,” Damodaran explained.

However, in case of officers who have already availed of leave for at least 10 working days in a calendar year on any other grounds, in a continuous spell, the discretion to grant the compulsory leave will rest with the department head concerned.

“Some officials just don’t go on leave. That’s not a healthy trend. We need this compulsory leave policy for such officials,” the UTI MF chairman said. Interestingly, one of the reasons why the scam of 1992 was unearthed was because one of the key officials in a leading bank who was in league with the brokers had gone on leave at the time.

The initial circular identified sensitive posts as under:

• all the chief investment officers, fund managers and assistant fund managers

• all the chief dealers and dealers

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• all the officers attached to the department of funds middle office

• all the branch/UFC (UTI Financial Centres) managers

• all the officers attached to international offices like the Dubai representative office

• all other officers in grade C and above.

But the review felt that in any investment institution or mutual fund of the type of UTI MF, every post is equally sensitive, and the policy therefore needed to be applicable across the board.