Under the Unit Trust Act, 1963, the Unit Trust of India was set up on 1st February, 1964. Objectives: The two objectives of the UTI are:
(a) to mobilize the savings of the relatively small investors and
(b) to make available the benefits of equity investment to small investors through indirect holding of securities.
• The UTI is managed by a Board of Trustee.
• The chairman of the Board is appointed by the central government in consultation with the IDBI.
• The Executive Trustee is appointed by IDBI.
• RBI nominates one Trustee, and four trustees by IDBI. Thus, the UTI occupies a pivotal position in the Indian capital market in mobilizing savings of heterogeneous investors and channeling into productive investment the savings it mobilizes, providing support to new issue market