Panel to smoothen FII investment process: UK Sinha

Excerpts from What's Hot on CNBC-TV18 Watch the full show » RELATED NEWS UTI to be first on NSE mutual fund platform Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty?

Q: What is the kind of role that T Rowe Price will pay? Of course there would have some board representation I would presume because you have an independent board, none of your existing shareholders are on your board and by when can one see this kicking off? When you say we will get their advise and help because there are also an asset management company, are there any two or three specific areas where you see the maximum impact that you will have dealing with the foreign partner?

A: Yes, already the binding agreement has been signed. So now we have filed the papers with the regulator and once we get the regulatory approval, this will become a deal where the shares will be transferred and money will come into their accounts. But while this process is going on, already we are in very intensive discussions with the new partner about business area synergy. Areas where we can see immediate synergy or immediate benefits could be for example our infrastructure private equity fund that we have set up. They are likely to assist us in a big way there.

In our international operations, to give you an idea, the offshore fund space UTI runs a fund called UTI India Fund, we might be known within the country but outside India, nobody knows UTI. So our partner will be able to capitalize on their relationships and they will be able to get us more inflows into that fund. We have also got an agreement - part of the agreement that in future the investments of T Rowe Price into India will be through UTI. For example, they are likely to launch an India specific fund. So these are the benefits.

Q: Is T Rowe Price very bullish on India?

A: Very bullish.

Q: One is of course their investment in the AMC business but as a portfolio investor in India, do you see that this relationship could lead to more T Rowe Price money coming to India because now they have a partner here, they probably will understand the Indian market better?

A: Yes you are right because that was one of the expectations from their side that my research team and my fund managers will be able to tell them on a more proactive way about developments within India. I am sure they will have better awareness about India whether it will lead to larger fund flow or not that is for them to answer but the very fact that they wanted more awareness about India and more research inputs about India we can draw a conclusion.

Q: Will there be a co-branding?

A: It is not prohibited, it can happen. The agreement provides for it, it is possible but these are specific things which we will discuss as we go along.

Q: But you have kept that as an open issue, there is no ban on it?

A: It is provided that it can happen.