failure of mutual fund scheme.

2. PERSONALITIES
• P S SUBHRAMANYAM
P CHIDAMBARAM
YASHWANT SINNHA

3. INTRODUCTION AND OBJECTIVE OF UTI
• LARGEST MUTUAL FUND (1964).
• UNIT SCHEME -64 (SMALL SAVING LARGE RETURN).

4. GENESIS OF THE SCAM
YEAR/ FINANCE MINISTER
• 1992, DR. MANMOHAN SINGH
• 1997, P CHIDAMBARAM (U F GOVT.)
• 1998, NEW BJP GOVT., P S SUBHRAMNYAM
CHANGES IN POLICY
• DEBT BASED TO EQUITY BASED
• REMOVED ALL NOMINEE ,(OUT OF SEBI
REGULATUION)
• UTI CRASHED, ISSUED 3500CR(BAIL OUT).

5. HOW IT HAPPENED????
• Funds Channeled Into K-10 Stock.
• In 2000, Software Stock Had Begun To Crash Bought Rupee 34 Crore (@Rs.930)cyberspace Infosys Ltd.
• Junk Bond Investment
• Promoting Uti (Redifussion).
• The Black Hole: Between 1994-1995, invested (Rs 386 cr)in 285 companies that no exit.
• PSU Pinch : 1991-1996, Invested Rs 4722 cr. in PSU Market value went halved.
• Feeding on the Future : 1994-1997,Dividend paid through loan(2221 CR) to make high dividend interest 20-
26%.

6. POLITICAL, PROMOTERS AND
OTHERS CONECTION
• BETWEEN FEBRUARY 12 AND MARCH 13, THE UTI CHIEF RECEIVED 12 CALLS (NEARLY 22
MINUTES) FROM THE RELIANCE GROUP
• PRITISH NANDY OF THE SHIV SENA, S.S. AHLUWALIA OF THE BJP AND T. SUBBIRAMI REDDY
OF THE CONGRESS

7. OUTCOME
• AMUSEMENT OF PUBLIC, GOVERNMENT BLAMING EACH OTHER.
• FAILURES OF GOVERNMENT
• FAILURE IN TRANSPARENCY AND ACCOUNTABILITY.