Question

The Cabinet Committee on Economic Affairs (CCEA) has declared a bailout package for UTI. It includes
I. Splitting UTI into two UTI-1 and UTI-II.
II.UTI-II with an asset base of Rs. 17,784 crore would be brought under professional management.
III. Extension of a tax cover to investors holding upto 5000 US-64 units.
IV. UTI-11 will be privatised.

• A. I, II, III and IV
• B. I, II and III
• C. II and III
• D. III and IV

Answer 1

The Correct Option is A

The correct option is (A): I, II, III and IV
Explanation:
The bailout package for the Unit Trust of India (UTI) included several key measures aimed at restructuring and stabilizing the organization:

1. Splitting UTI into two entities (UTI-1 and UTI-2) - This was part of the strategy to better manage the trust's assets and operations.
2. UTI-2 with an asset base of Rs. 17,784 crore would be brought under professional management - This aimed to enhance management efficiency and restore investor confidence.
3. Extension of a tax cover to investors holding up to 5000 US-64 units - This measure was intended to protect smaller investors and encourage them to retain their investments.
4. UTI-2 will be privatized - This was part of the long-term strategy to improve governance and operational performance.

Thus, all four points were included in the bailout package, making option A the correct choice.