SBI board approves divestment of 8.5% stake in UTI Trustee Company

State Bank of India (SBI) on Tuesday, November 10, 2020, said its board of directors has approved to divest over 8.5 per cent in UTI Trustee Company. The divestment is being made to comply with SEBI (Mutual Funds) (Amendment) Regulation, 2018.

SBI in a regulatory filing said, "The Executive Committee of the Central Board of Directors of State Bank of India approved the divestment of 8,510 equity shares constituting 8.51% of Bank's stake in UTI Trustee Company Private Limited to comply with the Regulation 78 of Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulation, 2018 subject to all regulatory approvals."

According to the regulation, no sponsor of a mutual fund, its associate or group company can have 10 per cent or more of the shareholding or voting rights in the asset management company (AMC) or trustee company of any other mutual fund.

It also cannot have representation on the board of the AMC or trustee company of any other mutual fund.