UTI AMC boardroom battle: T Rowe Price withdraws plea at Bombay High Court

Source – moneycontrol.com

T Rowe Price, which holds a 26 percent in UTI Asset Management Company has withdrawn the petition filed at the Bombay High Court, according to the media reports.

The plea was filed against other 4 stakeholders in UTI AMC — State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation.

Media reports said that US-based shareholder’s concerns on UTI AMC IPO and board composition have been settled.

The Securities and Exchange Board of India was of the view that cross-listing norms apply only to domestic shareholders and T Rowe Price will not have to dilute its stake in UTI MF.

T Rowe Price International, which owns 26 percent stake in UTI Mutual Fund approached the Bombay High Court seeking a direction to the Finance Ministry and capital market regulator Securities and Exchange Baird of India to prevent certain PSUs from stalling the company’s bid to come up with an initial public offer (IPO).

In its petition, T Rowe Price had claimed that four public sector undertakings — State Bank of India, Life Insurance Corporation, Punjab National Bank and Bank of Baroda — were trying to stall the company’s proposed IPO.

 The petition had also sought implementation of SEBI’s rules and regulations and to extend the term of Puri for another year to see the IPO through.
According to T Rowe Price, the four PSUs, which together own 74 percent in UTI AMC, were not in favour of granting Puri a second term.

The petition had also sought a direction to ask the four domestic shareholders to bring down their holding in the fund house to 10 percent each from the present 18.50 percent.

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