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JPC may not call UTI to depose

BS Economy Bureau

The joint parliamentary committee on the stock scam may not call Unit Trust of India to depose before it.

Committee chairman Prakash Mani Tripathi told reporters on Wednesday that since the role of mutual funds is not specifically included in the terms of reference of the panel, it would be difficult to expand the terms to include the mutual fund behemoth.

"Enlarging the terms of reference is not within the purview of the committee," he said.

"As a matter of rule, terms of reference of a committee are not changed," he added. Explaining the stand of the committee, Tripathi said irregularities had taken place in several areas of the financial sector and it was not possible to expand the inquiry to cover all aspects.

The position taken by the committee is significant as UTI's role has been mentioned in the Sebi preliminary report, which has already been circulated among the members.

The market regulator had said that UTI has at different times held outstanding positions in scrips held by Ketan Parekh.

The clarification is also interesting as the committee's mandate is to ensure protection of the small investors, a large percentage of whom invest in stock markets through UTI's mutual funds.

Tripathi also said that the committee members have not specifically discussed the issue of whether to call UTI or not.

He said the committee will discuss the methodology of calling the witnesses at its meeting on May 29 and 30.

The JPC chairman also said other than Amar Singh, no member has given details of their involvement so far.

Singh is involved in Energy Development Corporation Limited, Eastern India Chemicals Limited, Sarvottam Corporation Limited, Sahara India Media Communications Limited and Flex Industries.

He said the committee is expected to begin calling witnesses from the second week of June. The chairman also said that with a tight schedule, it will be difficult to complete the probe in time for the monsoon session. But he said that the committee can hold sittings during the session also.

The JPC members were briefed by the RBI team led by deputy governor S P Talwar on the scope of the different regulations with which the apex bank regulates the exposure of the scheduled banks in the bourses.

The committee also discussed the role of co-operative banks in a special session, in the light of the critical role banks like Madhavpura Co-operative Bank have played in the current scam.

Tripathi said while Sebi chief DR Mehta also briefed the MPs, a detailed report on Sebi activities will be held tomorrow along with an exposure to the role of BSE, NSE and that of NSDL.

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