UTI AMC stake sale: State Bank of India (SBI), LIC, Punjab National Bank, and Bank of Baroda look for bids, says report

The report also mentioned that earlier the Tata Group was believed to be in advanced talks to buy a majority stake in UTI AMC, but the deal did not materialise.

UTI Asset Management Company reported 59 per cent jump in profit after tax (PAT) at ₹86 crore for the three months ended March 2023.

In comparison, the company posted a PAT of ₹54 crore for the same quarter a year ago, UTI AMC said in a regulatory filing.

As of March 2023, UTI AMC’s assets under management stood at ₹15.56 lakh crore.

Earlier in 2019, the Securities and Exchange Board of India (Sebi) had asked LIC, SBI, and BoB to reduce their stakes in UTI Asset Management Co. Ltd by December 2020. Sebi’s cross-holding norms for mutual funds say the sponsor of one AMC cannot hold more than 10% in another.

Under Section 7B of the Sebi (Mutual Funds) (Amendment) Regulation, 2018, the market regulator had mandated all mutual funds to comply with the norms by March 2019.

In other news, India’s markets regulator is unlikely to give special exemption to mutual funds if they breach the norms for maximum permitted holdings in security after the merger of HDFC Bank and HDFC, Reuters reported.

HDFC Bank and HDFC are set to conclude a merger in the next few weeks to create India’s second-largest financial institution by assets after the State Bank of India.

As per the rules of SEBI, a mutual fund scheme cannot invest more than 10% in a single security. However, exchange-traded funds and funds that invest in particular sectors are exempt.

Updated: 15 Jun 2023, 08:00 AM IST