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Govt unlikely to probe insider trading charges on US-64

The government is unlikely to probe separately allegations of insider trading leading to large corporate redemption of over Rs 40 billion of UTI's US-64 in April-May, which forced the mutual fund to freeze the scheme for six months.

This issue figured during the Parliamentary Consultative committee meeting on Friday when members raised the UTI issue and Finance Minister Yashwant Sinha is understood to have said that while the issue needed to be investigated, there is no need for a separate probe, sources said.

Sinha is believed to have said that Joint Parliamentary Committee, probing the multi-billion stock scam, is already investigating the issue of insider trading including US-64, sources added.

Sinha had already indicated that the government would review the decisions of the UTI including the freeze of US-64 and the strategic sales of corporate shares held by it. Minister of State for Finance had said there would be some sort of fact-finding exercise.

Meanwhile, UTI is working out a plan to provide exit option to holders of US-64 units in a bid to provide liquidity. The plan along with bailout package are to be discussed on Monday by the UTI board of trustees.

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