SBI board okays to divest 8.5% stake in UTI Trustee Co

New Delhi: State Bank of India (SBI) on Tuesday said its board of directors has approved to divest over 8.5 per cent in UTI Trustee Company. "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 per cent of the bank's stake in UTI Trustee Company Pvt Ltd," SBI said in a regulatory filing.

The divestment, it said, has been approved to comply with Regulation 7B of the Securities and Exchange Board of lndia (Mutual Funds) (Amendment) Regulation, 2018.

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.

SBI's shares on Tuesday closed 5.56 per cent higher at Rs 231.70 apiece on the BSE.