The funds has also set up a venture capital fund, "India technology venture fund" for investment in sunrise industries. UTI chairman P S Subramaniam told reporters on the side lines of Iosco conference that UTI has already approached Reserve Bank of India and the Securities and Exchange Board of India for getting the approval of the offshore fund and expected the approval by the end of this year.

The Mauritius-based fund in which AMP has already contributed $100-million (Rs 440 crore) and the rest by foreign investors and NRIs would be marketed, promoted, serviced and appraised by UTI in the country.

"UTI would carry out the due diligence, project appraisal and managing the portfolio", the UTI chief said. On the government's disnvestment programme, Subramanyam said UTI has enough funds to help the government meet itsdisinvestment target of Rs 10,000 crore during the current fiscal.

UTI is flush with funds and would be interested in buying the government stake as companies listed for disinvestment have good fundamentals and are worth investing in, Subramanyam said.

He said UTI has invested in the recently concluded disinvestment of Gas Authority of India (GAIL) through the global depository receipts issue. Any other good issues in future would be subscribed by the fund, he added.

UTI picked up $250,000 worth of shares from the recent GDR offer made by GAIL. "We subscribed to the GAIL issue through an overseas open ended fund, the India Growth Fund. We can subscribe to more such offers in the future through this fund," Subramanyam said.