Headline: Equity contagion hits the mutuals Source: Euromoney Date: August 2001 Author: Kala Rao
On July 20, Pavagada Subramanyam, former chairman of the government-controlled UTI, which manages assets worth around $12.3 billion owned by 40 million investors, was arrested, along with two senior UTI officials, on charges of criminal conspiracy and abuse of public office. The trio are accused of privately buying shares in a software company last year, resulting in losses of about Rs320 million ($6.8 million). Subramanyam was sacked by the government in early July, a day after UTI's biggest fund, the $2.7 billion open-ended US 64, froze sales and purchases of its units until January next year. A falling stock market and large numbers of redemptions by investors forced the fund to take that extreme step. |