CFO Rahman named UTI AMC acting CEO

The Board of UTI Asset Management Company (UTI AMC) has appointed its Chief Finance Officer Imtaiyazur Rahman as the acting CEO with immediate effect till the appointment of a new chairman and managing director. The company has been headless for nearly a year since its former CMD UK Sinha quit in February 2011.

"Rahman will look after the day-to-day operations, working closely with the rest of the senior leadership team," the company said in a statement. The Board has also appointed PN Venkatachalam, retired managing director of SBI, as an independent director. Rahman is a member of the four-member management committee of the mutual fund. The shareholders of UTI AMC were on a collision course over the selection of a new CMD, with LIC, State Bank of India, Bank of Baroda and Punjab National Bank on the one side, and the US-based global investment management company T Rowe Price on the other.

The bone of contention between the state-owned financial institutions and T Rowe Price was the inclusion of Jitesh Khosla, a 1979-batch IAS officer, in the panel of prospective candidates to be interviewed by the shareholders. It is learnt that Khosla, who is the brother of Omita Paul, adviser to Finance Minister Pranab Mukherjee, was not in the shortlist prepared by the Board’s human resources committee. Khosla, who was until recently with Indian Institute of Corporate Affairs, an institution under the Ministry of Corporate Affairs, is currently additional chief secretary of Assam.

T Rowe Price which holds 26 per cent stake in UTI AMC was in favour of bringing a professional from the mutual fund industry to head the company.

As market regulator Sebi also directed the UTI AMC not to launch any scheme till it gets a chief, the company was unable to come out with any product since last February. Sebi allowed the company to launch a new scheme only recently. Two independent directors — Anita Ramchandran (who was the acting chairperson of UTIAMC) and Prithvi Haldea — have also recently stepped down from the board citing personal reasons.

Source: http://www.indianexpress.com/news/cfo-rahman-named-uti-amc-acting-ceo/899174/0