uti scam
TRANSCRIPT
UTI SCAM- U.S 64 CRISES
Primary objective and other objective of UTI
SCHEMES of mutual funds in UTI
OPEN ENDED
CLOSE ENDED
US-64 scheme
ESTABLISHMENT
INVESTORS
Fund to Bond to Cash
1964: UTI launches US-64, an open-ended balanced fund
1990-1995: Dividend rate of US-64 is 18%. It rises to 26% by 1995
1995-99: Net asset value of US-64 falls drastically
1999: Deepak Parekh panel set up to suggest US-64 revamp, bailout
2001: UTI suspends sale, purchase of US-64 units for six months
2003: US-64 mutual fund ends; investors offered cash or tax-free tradable
bonds, with 6.75% annual interest
2008: Bonds mature on 31 May, putting an end to the US-64 saga
Year wise information about the process of scam
Reasons behind US-64 crises
Non-declaration of NAV
Declaration of high dividend
Factors helped to rise the US-64 crises
Huge investment in Junk
bonds
Involvement of Ketan
Parekh
Role of Corporate Governance in UTI scams
TRANSPARENCY
ACCOUNTABILITY
INTEGRITY
IMPACT OF UTI SCAM ON INVESTORS
LOSS OF WEALTH
LOSS OF CONFIDENCE
RESULTS IN DECLINE OF
RETAIL PARTICIPATION
SUGGESTION TO PREVENT UTI SCAM IN FUTURE
TRANPARENCY IN THE SYSTEM STRICT LEGISLATION EFFECTIVE AND REGULAR
VIGILANCE HOLE OF MEDIA