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

Look who’s talking ethics in Karnataka?

 Just after the UP assembly election in 1996, I was among the scores of reporters waiting at Kalyan Singh’s residence, waiting to get the first inkling of the future course of the BJP. The party had secured the maximum seats – 174 out of 425 seats – but was short of the majority mark

Company secretaries are gatekeepers of corporate governance: SEBI Chairman

“Company Secretaries, once known as secretaries to the board and management, have transformed themselves into key managerial and governance professionals. Today they are recognised for their importance on corporate landscape and have become gatekeepers of corporate governance,” said Ajay Tyagi,

Will there be light at the end of the tunnel?

Any good news which promises to bring about qualitative improvement in the lives of people, especially in rural India, is always welcome. It was heartening indeed to learn that every single village in the country now has access to electricity, as announced by the prime minister on April 29. This is most ce

A dry run in Bundelkhand

The paved road, the few concrete houses and men on motorcycles – these are deceptive signs of development in Madralalpur village. Only a couple of weeks ago, Babu, a 47-year-old distressed farmer, had hanged himself from a babool tree. Villagers were gathered at his house as his wife, mother, sister-

Our jobs, their jobs

Statistics has come a long way from the time when British prime minister Benjamin Disraeli observed: “There are three kinds of lies: lies, damned lies, and statistics.” Statistics is now an accredited branch of applied mathematics; statistical methods are routinely used to prove or disprove the

Why hasty ordinance on rape of minors needs gender balance

Of all offences, it’s the crime of rape that fires public sentiment the most, eliciting an outrage that exceeds the seemingly worst felony of all – murder too. It has probably more to do with the offence and associated gory details staying, even being replayed ruthlessly, in memory with continu

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter