PSU stake sale: SEBI to be urged to extend deadline

Most of these PSU are facing difficulty in further diluting stake in such a short period as it will make valuations less attractive if too many PSUs hit the market in a short span of time.

GN Bureau | March 2, 2017


#SEBI   #stake sale   #PSU   #finance ministry  
 
The finance ministry may approach the Securities and Exchange Board of India (Sebi) to relax its August 21 deadline for PSUs to meet minimum 25 percent public shareholding requirement norm.
 
More than 15 PSUs including STC, MMTC, NLC, SJVN, ITDC, Hindustan Copper, Coal India, have less than 25 percent floating shares, The Statesman reported.
 
Sources said most of these PSU are facing difficulty in further diluting stake in such a short period as it will make valuations less attractive if too many PSUs hit the market in a short span of time. It could end up overcrowding the market, officials were quoted as saying.
 
The SEBI stipulated this new norm in 2014 and gave a three-year time for compliance. Earlier, the PSUs were required to have only 10 percent public shareholding.
 
Sources said another reason is that some PSUs such as HMT, ITI and Scooters India are sick and it would not be easy for the government to sell minority stake in these companies. 
 

Comments

 

Other News

Gati Shakti: The National Master Plan

The launch of the Gati Shakti master plan will be a booster dose for India growth story. The plan, as the name indicates, will ensure Gati, i.e., speed and Shakti, i.e., empowerment to the ₹1 trillion national infrastructure pipeline. The plan will break inter-ministerial silos. For examp

Centre misusing probe agencies for political gains: Pawar

Hitting back at the central government in a strongly worded attack, Nationalist Congress Party (NCP) chief Sharad Pawar has said Bhartiya Janata Party is misusing central investigative agencies for political benefits. “Central agencies including ED, CBI and NCB are being used for polit

A counter-terrorism thriller that’s also insider story beyond headlines

OPERATION TROJAN HORSE By D.P. Sinha and Abhishek Sharan Paperback | Rs 399 | 372 pages Espionage thrillers closely resembling tomorrow’s headlines are finally coming up in India too. Here is a striking new thriller inspired by true events and th

Finding strength to serve, come Covid or cyclone – the Swades way

Since 2013, in a holistic, 360-degree model of community development Swades Foundation has reached out to 2,700 hamlets and villages across Raigad and Nashik districts in Maharashtra. Applying the same principles during Covid-19 Swades along with district administrations has been rebuilding communities

Reading ‘Meghaduta’ in the times of climate change

Kalidasa’s Meghaduta: The Cloud Messenger Translated by Abhay K. Bloomsbury / 114 pages / Rs 399 ‘Meghduta’, a ‘messenger-poem’ of about 110 stanzas, is among the most precious jewels of Sanskrit literature, a cla

An ‘energy crisis’ in the making

This year during the second wave of Covid-19, an unprecedented ‘oxygen shortage’ crisis gripped the national capital and several other parts of the country. A similar situation is brewing in respect of the ‘power’ situation in the national capital and the rest of the country too. Ho

Visionary Talk: Chetan Bhagat, Author & Columnist on his upcoming book 400 Days



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter