New Delhi: Government on April 8 told the Rajya Sabha that the country's largest mutual fund UTI (Unit Trust of India) is on a revival path and its units have started fetching a premium.

"UTI is well on the revival path and it is a healthy sign," Finance Minister Jaswant Singh said while replying to supplementeries during Question Hour.

The Minister said its trading has started resulting in a premium on its units.

On the decline in investors' confidence in stock market, Singh attributed it to the Gulf crisis, the global downturn and drought.

He, however, said the recent developments in the Gulf have resulted in revival of the stock market.

Singh said the interest in stock market in rural sector has been limited as those investing from these areas are considered "satoris".

He said the mindset in India is different and people preferred the debt market to the capital market.

The interest in stock market has also declined due to stock scams and said the government will implement recommendations of the JPC (Joint Parliamentary Committee) on the stock market scam.

"We are committed to revive the interest and investors' confidence in capital market," he said.

PTI