Earlier this year, when Mumbai University Vice-Chancellor Vijay Khole had proposed that the university get itself listed on the Bombay Stock Exchange, the idea was seen as way ahead of its time.

But it now seems that slow steps in that direction are being considered by the University Grants Commission (UGC) itself: one of the suggestions that came up on Friday during the ongoing vice-chancellors’ conference here was to allow universities to generate funds by investing in blue-chips.

Confirming that the idea was discussed at a session on financing higher education, Khole said that many universities had corpus amounts. According to current rules, the money can only be deposited in nationalised banks, which offer “low rates of interest.”

“Hence we want UGC to consider our proposal to come out with a foolproof system to utilise public money, including donations, effectively. And investing in blue-chip companies which offer higher returns can help universities use the earnings for developmental activities,” said Khole.

Goa University Vice-Chancellor Dilip Deobagkar said investment by universities wouldn’t be difficult.

“As universities often get donations from alumni and other foundations, the UGC could plan a system whereby this money can be invested in financial markets or with consultancies,” Deobagkar said. “This will also take some burden off state governments. But it needs deliberation since the idea of universities investing can be misunderstood and also misused.”

Another delegate at the meeting said that even the idea of Mumbai University, or any university, going public could well be accepted in a few years. “The proposal of investing in blue-chips is a step in that direction.”

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