Stick to norms, Sinha tells FIs

By Our Special Correspondent

NEW DELHI, AUG. 1. The Union Finance Minister, Mr. Yashwant Sinha, is reported to have told financial institutions that the Government would closely monitor investments made by them into the equity of private companies so as to avoid a recurrence of a UTI type fiasco.

The Finance Minister's comments came during a meeting he had today with the top executives of Industrial Finance Corporation of India (IFCI) and the stakeholders of IFCI which include the Industrial Development Bank of India, the Life Insurance Corporation, the General Insurance Corporation and the State Bank of India. Commenting on the meeting, the Joint Secretary in the Finance Ministry, Mr. U.K. Sinha, told reporters that the Government would not ``over-monitor'' these institutions but would try and see that prudential norms of investment were followed by them. The Finance Minister is understood to have told these institutions that they should run their organisations on profitable lines, but would have to follow the prudential guidelines laid down by the regulatory authorities, the Joint Secretary added.

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Section  : National
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