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

In Mumbai, Women’s Legal Forum for Housing Societies to hold conference on 29th

With around 10,000 buildings in need for redevelopment in Mumbai, a large number of private housing societies do not have conveyance. This leads to problems during redevelopment due to red-tapism and corruption. Lack of transparency among builders, residents and authorities, disputes over flat sizes, reloc

‘India’s G20 presidency has left a lasting legacy’

Power and Purpose: Rediscovering Indian Foreign Policy in Amrit Kaal By Harsh V. Pant and Anant Singh Mann Rupa Publications, 288 pages, Rs 595

Finally, a definitive biography of a man whose vision is shaping India

Hedgewar: A Definitive Biography By Sachin Nandha Vintage Books, 432 Pages, Rs 999.00 The Rashtriya Swayamsevak

Bridging wellness and heritage: Yoga at Meghalaya’s Living Roots

In a fusion of tradition, nature, and well-being, yoga practitioners unrolled their mats at one of India’s most astonishing natural marvels—the ‘Double Decker Living Root Bridge’ in Meghalaya. Against a backdrop of misty hills, gushing waterfalls, and the whisper of ancient roots, t

India’s new nuclear energy strategy

India’s 2025 budget has introduced a focus on reforms across six specific domains, and one of which is the power sector. The strategy involves bolstering the nation’s economic development through its proposed engines of agriculture, MSMEs, investment and exports. The fuel for this development,

Give and take: The essence of living!

We live in a world which is characterised by “Parasparopagraho Jīvānām”. This is a Jain aphorism from Tattvarth Sutra, the most authoritative sacred text of Jains [https://en.wikipedia.org/wiki/Tattvartha_Sutra]. Th

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now



Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter