India's top fund manager quits on bitter note

UTI Asset Management Company (AMC) managing director Leo Puri has said he will demit office on Monday despite a court dispute over the appointment of a new MD. In an e-mail to shareholders late Thursday evening, Puri said he will go ahead with the decision he had conveyed earlier. "I wish to categorically state I am not seeking an extension, and will therefore be leaving office as planned," a source told TOI, quoting the e-mail.When contacted, Puri confirmed that he had offered to demit office when his current term ends. He will meet senior UTI executives on Monday.While Puri refused to discuss the issue further, sources said it is tough for a professional to work when the board is divided. T Rowe Price holds a 26 per cent stake in the company, with LIC, Punjab National Bank and Bank of Baroda being the other shareholders.Overseas investors and public sector promoters have been fighting a bitter battle for control over UTI, which has now reached the doorsteps of the government, which is keen to resolve the dispute.Sources said the government is also upset over LIC insisting on nominating its retired executives on AMC's board. While the public sector shareholders are looking to respond to T Rowe Price's petition on Monday, they are keen to decide the succession issue quickly, a matter that has also been flagged by the trustees for the past several months.

from The Economic Times https://ift.tt/2P1P4R0