UTI is yet to nominate a director even though no corporate has in its reply to the trust stated categorically that it would not offer a board slot to the country's largest mutual fund.

However, most corporates have indicated that the objective of instilling corporate governance and ensuring greater communication between the two sides would be better met through enhanced presentations and interactions. The meetings could, apart from corporate presentations to UTI, involve plant visits and greater interaction between companies and equity analysts of the trust.

"This is something which corporatesdo with foreign fund managers quite regularly and there is no reason why the same should not be done with UTI. The objective of writing the letters to corporates was to ascertain how shareholder value can be enhanced and corporate governance improved. Corporates have suggested that these objectives can be met through greater interaction between us through consistent presentations to us. We will first see if this works out for if it does then there is no need for us to put our nominees on board. We can and will of course be able to put our nominee on the board if the situation arises," said a top UTI official.

It may be recalled that UTI, had, in March this year, written to a number of corporates outlining the need to enhance interaction with them and facilitate corporate governance. One way in which this was sought to be achieved was through placing board nominees.

The move, however, raked up a major controversy with some companies and experts questioning the motive. At the same time, some largecorporates said that they were ready to offer a board slot to UTI if it so desired.

The ball is now in UTI's court to appoint directors and sources say that given the clout that the trust enjoys it would not be too much of trouble for it to arm twist corporate houses into providing board seats. But this is not what appears to be on UTI's mind as it awaits greater interaction with corporates.

Sources said the idea of raising a debate on the issue was also aimed at bringing the mutual fund on par with term-lending institutions. The institutions, according to UTI sources, get a consistent update by corporates on its performance. "We as equity holders were not getting the same and hence the move for enhance interaction," said a source.