Unit Trust of India (UTI) was established in 1964 as the sole vehicle for investment in the Indian capital market. It maintained dominance until the 2001 Ketan Parekh scam caused a loss of confidence. The government bifurcated UTI into UTI Mutual Fund and Specified Undertaking of UTI (SUUTI) to rescue it. UTI Mutual Fund is now owned by several public sector banks and has regained market share through reforms, offering over 70 schemes and serving over 9 million investors. Reliance Capital is a major financial services company operating in asset management, insurance, private equity and other areas. It has significant market share in mutual funds, life and general insurance, and ranks among the top 3

1. 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.
[4]
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rescue package and change of management in 2001.Subsequently, the UTI Act was repealed and the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.

2. 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 Section–Administration) 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.
[3]
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.
Minor stakes[edit]

3. 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
World’s 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]

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