ndian inan ial     ar et   11.11
           company’s activities, the name of RCTC                 sector banks, public insurance companies
           was changed to IFCI Venture Capital                    and public mutual fund (i.e., UTI Mutual
           Funds Ltd. (IFCI Venture) in February                  Fund Ltd.).
           2000.
                                                       (iii) Investment Instituions (IIs)
              In order to focus on Asset Management
           Activities, IFCI Venture discontinued       Three investment institutions also came up in the
           Risk Capital and Technology Finance         public sector, which are yet another kind of FIs,
           Schemes in 2000-01 and continued            i.e., the LIC (1956), the UTI (1964) and the GIC
           managing VECAUS-III. In 2007, as            (1971).
           UTI had ceased to carry out its activities        In the present time they are no more known as
           and its assets vested with Specified        DIIs (Domestic Investment Institutions) or DFIs
           Undertaking of the Unit Trust of India      (Domestic Financial Institutions). LIC is now
           (SUUTI), the portfolio of VECAUS-III        the public sector insurance company in the life
           under management of IFCI Venture was        segment, GIC was been converted into a public
           transferred to SUUTI.                       sector re-insurance company in 2000, while UTI
       (b) Tourism Finance Corporation of India        was converted into a mutual fund company in
           Ltd (TFCI), 1989: The Government of         2002. Now these investment institutions (IIs)
           India had, on the recommendations of        are no more like the past. LIC is now called an
           the National Committee on Tourism           ‘insurance company’, part of the Indian Insurance
           (Yunus Committee) set up under the aegis    Industry and is the lone public sector playing in
           of the Planning Commission, decided         the life insurance segment competing with the
           in 1988, to promote a separate All India    private life insurance companies. Similarly, the
           Financial Institution for providing         UTI is now part of the Indian Mutual Fund
           financial assistance to tourism-related     industry and the lone such firm in the public
           activities/projects. In accordance with     sector competing with other private sector mutual
           the above decision, the IFCI Ltd. along     funds. Similarly, the earstwhile four public sector
           with other all-India financial/investment   general insurance companies are part of India’s
           institutions and some nationalised banks    general insurance industry and competing with
           promoted a Public Limited Company           private companies in the area (they were Holding
           under the name of “Tourism Finance          Comapnies of the GIC—now these are owned by
           Corporation of India Ltd. (TFCI)”           the GoI directly and GIC only looks after its ‘re-
           to function as a Specialised All-India      insurance’ business). This is why we do not get the
           Development Financial Institution to        use of the term ‘IIs’ in recent times in any of the
           cater to the financial needs of the tourism GoI official documents.
           industry.
                                                       (iv) State Level Finance Institutions (SLFIs)
              TFCI was incorporated as a Public
           Limited Company in 1989 and became          In the wake of states involvement in the industrial
           operational with effect from 1989.          development, the central government allowed the
           TFCI was notified as a Public Financial     states to set up their own financial institutions
           Institution in January 1990. Its promoter,  (after the states demanded so). In this process two
           the IFCI, holds major share (41.6 per       kinds of FIs came up:
           cent) in it, while the rest of the shares        (a) State Finance Corporations (SFCs): First
           are with the ‘public’ (26 per cent), public            came up in Punjab (1955) with other