PSU employees to play larger role in disinvestment

Sebi has allowed companies to allot more shares for employees during public offers, increasing the limit for the value to Rs 5 lakh from the current Rs 2 lakh

GN Bureau | October 4, 2016


#SEBI   #disinvestment   #ONGC   #NTPC   #BHEL   #IOC  

 Market regulator Sebi has agreed to the government’s proposal to give employees of central public sector undertakings (PSUs) a larger role to play in the disinvestment process.

With a long list of central PSUs lined up for disinvestment in the current financial year, employees of state owned firms will  be given the right to subscribe to more than twice the current quota of shares, Sebi said on Tuesday, according to a news report published in the New Indian Express.
 
The move has been taken due to the enthusiastic subscription demand from employees earlier in the years when Indian Oil Corporation and NTPC shares went on sale.
 
The finance ministry had requested the market regulator to allow state run companies’ employees to apply for shares beyond the limit of Rs 2 lakh per employee.
 
Sebi took up the proposal for examination during its meeting on September 23, and has now allowed companies to allot more shares for employees during public offers. There would be an increase in the limit for the value of such allotments to Rs 5 lakh from the current Rs 2 lakh.
Currently, the system in place lets the government offer shares to employees of a company up to a maximum of 0.5 per cent of the post issue capital of the issuer. The shares themselves are offered at a discount of 5 percent to the employee.
 
According to government data, the centre had raised Rs 262 crore through the allotment of shares to employees of IOC. They had applied for 53 percent of the shares offered to them. In the case of NTPC, the government raised  Rs 204 crore when the employees bid for over 85 percent of the shares.
 
During the current financial year, the government has lined up over a dozen companies including oil and gas sector giant ONGC, natural resources firm NMDC and heavy electronics major BHEL for disinvestment.
 
Through the sale of stake in PSUs, the government is expecting to raise over Rs 56,500 crore. 
 

Comments

 

Other News

BHEL commissions supercritical thermal power plant in UP

With the commissioning of the third unit of the Prayagraj Super Thermal Power Project (PSTPP), Bharat Heavy Electricals Limited (BHEL) has successfully executed the 1,980 MW coal-based supercritical thermal power project in Uttar Pradesh.   The first two units of the project

A corporation to be set up for Digital India

The ministry of electronics and information technology (MEITY) will set up a new body, Digital India Corporation (DIC), to execute prime minister’s ambitious Digital India programme. The corporation will subsume some of the existing agencies within the ministry including the National e-Gove

India, Japan to build Asia-Africa corridor to checkmate OBOR

While India and China are pitted against each other in South Asia and the Southeast Asian region, and the former’s refusal to participate in Beijing held summit on One Belt One Road (OBOR) initiative was a low point in their bilateral ties, New Delhi is now preparing an initiative that will r

Pragati Maidan to be turned into exhibition-cum-convention centre

The existing Pragati Maidan complex is set to get a new face with its redevelopment into a world class state-of-the-art integrated exhibition-cum-convention centre (IECC).   CMD, India Trade Promotion Organisation (ITPO), L C Goyal and CMD, NBCC (India) Limited, Anoop Kumar M

GAIL clocks 57% rise in profit after tax in 2016-17 FY

GAIL (India) Limited has registered 57 percent rise in profit after tax (PAT) for the 2016-17 fiscal with the PAT increasing to Rs 3,503 crore from Rs 2,226 crore in the last fiscal.   The rise in profit was boosted mainly by a turnaround in the company’s petrochemical

The case of former coal secy and the anti-corruption law

  A senior bureaucrat, apparently much respected among the administrative circles, faces two years in jail. His crime: a decision that may have come from the political leadership.   HC Gupta, a former coal secretary, is among the three bureaucrats convicted b



Video

प्रभुनाथ सिंह को हत्याकांड में उम्रकैद की सजा

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter