The country's oldest mutual fund – UTI Mutual Fund – has appointed Mr Imtaiyazur Rahman as its acting CEO.

The CEO's appointment has been mired in controversy over the last one year owing to dissent among the two groups of stakeholders – domestic financial institutions and US based investor T Rowe Price.

The top position at the country's fifth biggest MF has been vacant for close to a year now. In February last year, Mr U.K. Sinha, who was the Chairman and Managing Director of UTI MF, moved to become chairman of the Securities and Exchange Board of India.

Mr Rahman is currently the Chief Financial Officer and Head, Department of Administration and Information Technology, and Department of Funds Management at India's oldest fund house.

“The Board of UTI AMC in its meeting held on Thursday in New Delhi has appointed its Chief Finance Officer, Mr Imtaiyazur Rahman, as an acting CEO with immediate effect till the appointment of new Chairman and Managing Director,” said a company statement.

“Mr Rahman will look after the day to day operations of the company, working closely with the rest of the senior leadership team,” added the company statement.

The Board has also appointed Mr P N Venkatachalam, retired Managing Director of SBI, as an Independent Director on the Board of UTIAMC.

Lack of consensus

There was lack of consensus over the choice of appointment for the top position among different stakeholder groups. While the domestic financial institutions backed the appointment of IAS officer Mr Jitesh Khosla for the post of Chairman, T Rowe Price, the US based investor was pushing for a professional to take charge.

Since January 2011, this fund house has lost 14 per cent of its AUM due to this lack of clarity, said analysts. As of December, 2011, the AUM of the fund house stands at Rs 57,817 crore.

> manisha@thehindu.co.in

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