(LiveMint)
T . Rowe Price, the largest shareholder of UTI Asset Management Co. (UTI AMC), called a truce with the government and the markets regulator after the finance ministry agreed to issue a no-objection (NOC) letter for UTI AMC’s initial share sale, and direct state-run financial institutions to cut their stakes in the local asset manager, two people aware of the development said.
The US fund manager withdrew its writ petition against the government, the Securities and Exchange Board of India and other UTI AMC shareholders on Tuesday after it was satisfied with the assurances given by finance ministry officials at a meeting in early August, the people cited above said on condition of anonymity.
Accordingly, the government will ask Life Insurance Corp. of India (LIC), State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) to slash their stakes in UTI AMC from 18.25% to 10% each, within a deadline. T. Rowe Price owns 26% in UTI AMC, but the four government institutions together command a majority on its board.
T. Rowe Price approached the Bombay high court on 8 August, seeking its intervention to force the four state-run institutions to reduce their stakes as mandated by the stock markets regulator, and order the continuance of its chief executive, Leo Puri. On 28 August, it withdrew the petition.
