Mumbai University has planned to get listed in the stock exchange. By terming this proposal as unusual, the University Grants Commission (UGC) has asked Mumbai University to come out with the detail of the idea how it would be get listed in the stock exchange and how it would be helpful for the University.
150-year-old Mumbai University was set up after the recommendations of the famous Wood’s Education Dispatch in India. The University has planned to take part in financial market and has been appointed Deutsche Bank as the lead manager of the University’s work in stock market.
On the other hand, the UGC and the HRD officials have showed their serious concerns on this idea and the report says that Mumbai University’s stock listing ambition may go slow till the next move taken by UGC.
According to the UGC, the Bombay University Act, 1953, disallows the university administration to raise funds through stock listing. There will be an amendment needed in the Act before the university can exercise this option.
The UGC is not showing any positive thoughts on Mumbai University’s move and the question remains in the air that can an educational institution become a commercial entity?
Earlier, the Supreme Court had stated in a judgment in the Unnikrishnan and T M A Pai case that education institutions should not be for profit making.
If the University would go in stock market, there would be diverse implications such as government’s role would be limited in the university administration, big corporate house would control course content and grading system.
However a University official said that this is an innovative idea. The University proposes to follow the model that is being practiced by Public Sector Units.