The President
has promulgated the Restructuring of the Unit Trust of India (UTI)
and Repeal of the Unit Trust of India Act, 1963 Ordinance 2002,
the Securities and Exchange Board of India (SEBI) (Amendment)
Ordinance, 2002 and the Metro Railways (Operation and Maintenance)
Ordinance, 2002. With this, the three Ordinances numbered as 5,
6 and 7 of the year 2002 respectively have been notified in the
Gazette of India and come into force with immediate effect. These
Ordinances will be replaced by Bills for enactment by the Parliament
during its forthcoming Winter Session.
The
Restructuring of the Unit Trust of India and Repeal of the Unit
Trust of India Ordinance, 2002, seeks to repeal the UTI Act, 1963,
restructure the country’s largest mutual fund company, UTI, by
splitting it into two parts, such as, UNIT-I comprising US-64
and Assured Return Schemes and UNIT-II consisting of the Net Asset
Value Schemes. The assets and liabilities of the UTI will, hence
forth, vest in these two entities. It also seeks to rationalize
the restructuring process of UTI. There is no bail out. Besides,
it seeks to corporatize the two UNITs so as to enable them to
compete in the market economy. By fencing in the liabilities of
UTI, this restructuring would ensure that a permanent and final
solution to UTI is now available.
The
Securities and Exchange Board of India (Amendment) Ordinance,
2002, seeks to amend the SEBI Act, 1992 in order to enlarge the
strength of its Board, Securities Appellate Tribunal, confer on
SEBI power of search and seizure with court approval and enhanced
penalty to Rs. 25 crores. This is intended to stabilize capital
market and build confidence of investors for an effective regulation
of listed companies to save them from predatory manipulators in
tune with the emerging globalization of Indian economy.
The
Metro Railway (Operation and Maintenance) Ordinance, 2002 seeks
to provide a legal frame for regulation of the Delhi Metro Rail
Corporation (DMRC) in the National Capital Territory of Delhi.
Patterned on the Indian Railways Act, 1989, the Ordinance will
regulate operation, maintenance and upkeep of DMRC in orderly
ways. It provides for a Metro Railway Administration, with a provision
for a Metro Railway Safety Commissioner to regulate operational
and otherwise safety standards of DMRC, and a Claims Commissioner
for accidents and resultant compensation in its operation. The
provisions for offences and penalties to be prescribed are in
consonance with those in the Calcutta Metro Railway and in the
Indian Railways Act, 1989 with suitable enhancement.
The
Metro Railway in Delhi has been operated by the Delhi Metro Rail
Corporation Ltd., which is a Government owned company incorporated
under the Companies Act, 1956 with the Centre and Delhi Government
as equal partners. The Chairman of DMRC is a nominee of the Central
Government and Managing Director a nominee of the Delhi Government.
