Case Study 5 UTI Scam

Q1) Analyse the case o Ethical parameter

Ans) UTI on its Ethical Parameter were not alright. UTI misused its
power and capital for its benefit and to incorporate with political
agendas and fake schemes, which not only violated the protocol
but also eventually there was damage caused to the company and
to its investors.
Despite of all the challenges UTI tried to launch its new share US-64
for its investors with the support of the govt agencies who has
overall supported UTI and also covered the mistake caused by it.

Q2) what is relationship between Ketan Parekh Scam

and Us-64 Scam?
Ans) Ketan Parekh was well known for its stocks and share market,
so UTI has shown interest and purchased Ketan Parekh’s Global
Tele, Himachal Futuristic and DSQ, the only mistake UTI has done is
not knowing the background of Ketan’s Stocks which led to a Scam
and indirectly UTI’s involvement caused panic situation UTI’s
reputation was hampered.
Q3) Do you think the Scam could be averted?
Ans) The scam could be averted if UTI’s board member had
thought while taking the decision, normally people check the stocks
background and upon a detailed research, then only people go for
a bid in the market.
The company must have stopped on the first alarm and not being
impatient while taking the decisions.
But this is important to understand for all of us before taking any
steps.

Q4) Do you think corporate governance practices led to

US-64 Scam?
Ans) I wouldn’t fully agree to it but yes corporate governance
could have stopped this by checking on its ethical parameters, it
has the right to check the compliance and risk analysis
management must ensure about it.
And company runs upon the decision making and correct
leadership and the decisions. Why I didn’t fully agree to this, as
corporate governance practices was limited to following protocols
and overall backend monetary weightage was giving profit.
Although the corporate does not have proper governance so it led
to improper management.