Unit Trust of India is a financial organization in India, which was created by the UTI Act passed by the [2]

Parliament in 1964. For more than two decades it remained the sole vehicle for investment in the capital market by the Indian citizens. In mid- 1980s public sector banks were allowed to open mutual funds. The real vibrancy and competition in the MF industry came with the setting up of the Regulator SEBI and its laying down the MF Regulations in 1993.UTI maintained its pre-eminent place till 2001, when a massive decline in the market indices and negative investor sentiments after Ketan Parekh scam created doubts about the capacity of UTI to meet its obligations to the investors. This was further compounded by two factors; namely, its flagship and largest scheme US 64 was sold and re-purchased not at intrinsic NAV but at artificial price and its Assured Return Schemes had promised returns as high as 18% over a period [3] going up to two decades. As of 2010, UTI has 10 million investors.
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Fearing a run on the institution and possible impact on the whole market Government came out with a rescue package and change of management in 2001.Subsequently, the UTI Act was repealed and the institution was bifurcated into two parts .UTI Mutual Fund was created as a SEBI registered fund like any other mutual fund. The assets and liabilities of schemes where Government had to come out with a bailout package were taken over directly by the Government in a new entity called Specified Undertaking of UTI, SUUTI. SUUTI holds over 27% stake Axis Bank. In order to distance Government from running a mutual fund the ownership was transferred to four institutions; namely SBI, LIC, BOB and PNB, each owning 25%. Certain reforms like improving the salary from PSU levels and effecting a VRS were carried out UTI lost its market dominance rapidly and by end of 2005,when the new share-holders actually paid the consideration money to Government its market share had come down to close to 10%! A new board was constituted and a new management inducted. Systematic study of its problems role and functions was carried out with the help of a reputed international consultant. Fresh talent was recruited from the private market, organizational structure was changed to focus on newly emerging investor and distributor groups and massive changes in investor services and funds management carried out. Once again UTI has emerged as a serious player in the industry. Some of the funds have won famous awards, including the Best Infra Fund globally from Lipper. UTI has been able to benchmark its employee compensation to the best in the market, has introduced Performance Related Payouts and ESOPs. The UTI Asset Management Company has its registered office at: UTI Tower, Gn Block, Bandra Kurla Complex, Bandra (East),Mumbai - 400 051.It has over 70 schemes in domestic MF space and has the largest investor base of over 9 million in the whole industry. It is present in over 450 districts of the country and has 100 branches called UTI Financial Centres or UFCs. About 50% of the total IFAs in the industry work for UTI in distributing its products! India Posts, PSU Banks and all the large Private and Foreign Banks have started distributing UTI products. The total average Assets Under Management (AUM) for the month of June 2008 was Rs. 530 billion and it ranked fourth. In terms of equity AUM it ranked second and in terms of Equity and Balanced Schemes AUM put together it ranked FIRST in the industry. This measure indicates its revenue- earning capacity and its financial strength. Besides running domestic MF Schemes UTI AMC is also a registered portfolio manager under the SEBI (Portfolio Managers) Regulations. It runs different portfolios for its HNI and Institutional clients. It is also running a Sharia Compliant portfolio for its Offshore clients. UTI tied up with Shinsei Bank of Japan to run a large size India-centric portfolio for Japanese investors.

For its international operations UTI has set up its 100% subsidiary, UTI International Limited, registered in Guernsey, Channel Islands. It has branches in London, Dubai and Bahrain. It has set up a Joint Venture [5] with Shinsei Bank in Singapore. The JV has got its license and has started its operations. In the area of alternate assets, UTI has a 100% subsidiary called UTI Ventures at Banglore This company runs two successful funds with large international investors being active participants. UTI has also launched a Private Equity Infrastructure Fund along with HSH Nord Bank of Germany and Shinsei Bank of Japan. CURRENT CEO : Mr . Emtaiyazur rehman Mr. Rahman is currently the Acting CEO of UTI AMC Ltd. looking after the day-to-day operations of the company. He has about 25 years of experience in management and business leadership. In UTI AMC, he heads the functions of Finance, Accounts, Taxation and Board related matters. He is in charge of the Global operations of the company. He also heads Information Technology, Administration, Estates, Fund Management (Dealing SectionAdministration) and co-ordinates the Private Equity arm of UTI AMC. In the past, he has held the position of Head, Human Resources. Mr. Rahman is on the Board of UTI International (Singapore), Offshore Funds of UTI International, and Invest India Micro Pension Ltd. He is a Member on Investment Committee of Ascent Capital (PE). He is a Director on the Board of Association of Mutual Funds in India (AMFI). He has been the Convenor of the AMFI Committee on Foreign Investment. He is also on the Investment Committee & Capital Market Committee of IMC. Reliance Capital Limited (BSE: 500111, NSE: RELCAPITAL) is a financial servicescompany and part of a Reliance Anil Dhirubhai Ambani Group. It is registered with the Reserve Bank of India under section 45IA of the Reserve Bank of India Act, 1934. as a public limited company in 1986 and is now listed on the [2] Bombay Stock Exchange and the National Stock Exchange (India). Reliance Capital has a net worth of over 33 billion (US$560 million) and over 165,000 shareholders. On conversion of outstanding equity instruments, the net worth of the company will increase to about 41 billion (US$690 million). It is headed by Anil Ambani and is a part of the Reliance ADA Group. Reliance Capital ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in : Asset management. Mutual funds. Life and general insurance. Private equity and proprietary investments. Stock broking. Reliance PMS. Depository services and financial products. Consumer finance and other activities in financial services.
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Minor stakes[edit]

Sept 2010 - Kerala Airport (15%stake),47Mn$-----------Reliance Infrastructure Sept 2010 - Trent (9% stake),4.5Mn$------------------Reliance Capital Aug 2010 - ICEX (26% stake)----------------------- Reliance Capital Apr 2010 - Pathway world (minor stake)--------Reliance Equity June 2010 -UTV Bloomberg (18% stake)--------------Reliance Capital May 2010 - Fame Cinema (15% stake)---------------Reliance Mediaworks Ltd Sept 2010 - Trinethra Infra (5% stake)------------Reliance Capital May 2007 - Network18 group (10% stake)---------------------------Reliance Capital May 2007 - TV Today group (14.02% stake)--------------------------Reliance Capital Oct 2008 - Hong Kong Mercantile (15% stake)-----------------------Reliance Capital

ICEX[edit]
Commodity markets regulator FMC said it has given approval to the Anil Ambani Group to acquire 26 per cent stake in Indian Commodity Exchange (ICEX) from one of its promoters, Indiabulls group. "We have given permission to Anil Ambani Group to buy 26 per cent stake in ICEX from Indiabulls," Forward Markets Commission (FMC) Chairman B C Khatua said.At present, Indiabulls holds 40 per cent in ICEX, of which it wants to sell 26 per cent stake in the bourse to ADAG. MMTC has 26 per cent stake in ICEX, which is the country's fourth national commodity exchange launched late last year. "We entered the exchange business in late 2009. We have already started a spot exchange and have a 26 per cent stake in a commodities exchange," ADAG Group Chairman Anil Ambani had said yesterday at the AGM of group firm Reliance Capital. The Group had also announced its intention to enter all segments of the exchange business. Reliance Capital is already in the spot commodity space. Another group firm Reliance Money also has stake in the national commodity exchange NMCE.ICEX, a national-level commodity bourse, offers futures trading in 18 commodities, including bullion, metals and agricultural items. The exchange clocked a business of 130 billion (US$2.2 billion) in the first fortnight of September. Reliance Mutual Fund is India's no.1 Mutual Fund. Reliance Life Insurance is one of India's fastest growing life insurance company and among the top 4 private sector insurers. Reliance General Insurance is one of India's fastest growing general insurance company and among the top 3 private sector insurers. Reliance Money is the largest brokerage and distributor of financial products in India with over 2.7 million customers and has the largest distribution network. Reliance Consumer finance has a loan book of [4] over 89 billion(US$1.5 billion) at the end of December 2008. Reliance Capital has a net worth of 72.5 billion (US$1.2 billion) and total assets of billion (US$3.8 billion) as of December 31, 2008. 223.4

Reliance Capital is a constituent of S&P CNX Nifty and MSCI India and also features in the Forbes list of Worlds largest 2000 public companies. Reliance Securities, subsidiary of Reliance Capital achieved a pan-India presence with over 5,000 outlets [5] and the average daily turnover had increased to 23 billion (US$390 million) in 2010.

References[edit|edit source]

1. ^ "Reliance Mutual Fund - Reliance Capital Asset Management Limited - Mutual Funds of Reliance". Iloveindia.com. Retrieved 2010-12-21.