Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel
August 2, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel |
||
|
|
||
|
Home >
Money > PTI > Report August 2, 2001 |
Feedback
|
|
|
UTI bought RIL shares at a discountReliance Industries Ltd on Thursday clarified that there were no 'irregularities' in Unit Trust of India's decision to invest Rs 10.73 billion in the company's shares on October 1994 and the fund has made a profit of Rs 8.62 billion on its investment till date. "The private placement of RIL shares with the FIs, including UTI, was made at a discount and not at a premium to the then prevailing market price. The shares were priced at Rs 385 in October 1994, representing a discount of six per cent to the closing market price of Rs 409.6 on the BSE on that date," RIL said in a statement. The clarification comes in the wake of heated arguments in the parliament over UTI investment decision on RIL way back in 1994. RIL claimed that the Central Bureau of Investigation had already made investigations regarding UTI's investment in the company's shares, while other relevant authorities including ministry of finance, Sebi, DCA (Department of Company Affairs) and chief vigilance officer of UTI have also examined it in depth. The chief vigilance officer of UTI had informed the CBI that the issue was scrutinised by three independent auditors and they found 'no adverse role' by any UTI official. The company further clarified that UTI's investment in RIL shares in 1994 represented less than two per cent of the fund's total corpus and less than five per cent of the corpus of US-64 scheme at that time, and not 25 per cent as was being mentioned. "In any case, the fact is that the said investment in RIL shares has generated huge profits for UTI, rather than causing any losses," the RIL statement said. "It is also far fetched to suggest that UTI's present troubles are co-related to two transactions of investment in RIL shares dating back to 1994," it said. The company also said, "UTI has made profit of nearly Rs 30 billion in the last seven years, on its aggregate investments in RIL and Reliance Petroleum shares." ALSO READ:
|
||||||
