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

Reality As It Is: The Buddha`s advice on overcoming bias, prejudices

‘See Things As They Are’: Life Lessons from the Buddha Edited by Nanditha Krishna Aleph, 98 pages, Rs 399 There is a wonderful idea behin

World growth expected to face inflation pressures

World GDP forecasts for 2023 have been revised down again as central banks intensify their fight against inflation and the outlook for China’s property market deteriorates, says Fitch Ratings in its latest Global Economic Outlook (GEO) report. Fitch now expects world GDP to grow by 1.4

200+ bird species documented in Chhattisgarh’s first-ever survey

Nine species of owls (including the magnificent spot-bellied eagle-owl), 10 birds of prey, 11 species of Woodpeckers (including white-bellied woodpecker – the largest woodpecker in peninsular India), and many other species have been documented during a first-ever bird survey in Chhattisgarh.

Cyclists plan ‘memorial ride’ to press demand for infrastructure

Cycling is a passion for many, and it is a way to fitness too. With rising numbers of vehicles on the road, the government encourages this environment-friendly mode of transportation, but it comes with numerous challenges. An accident last month on the Mahipalpur flyover of south Delhi, which took the life

“World headed towards stagflation; India must take care of the poor”

As the post-pandemic fallout and geopolitical uncertainty slows down global economies and sanctions against some nations, energy crisis and inflation are adding to the troubles, India is projected to be decoupled from world economy and fare better. To check if this belief really holds water, in the latest

The changing nature of CSR in India

With the advent of globalization came a new set of challenges for corporations, notably the duty of ensuring the well-being of all stakeholders while also protecting the planet`s natural environment. Although we are dedicated to a faster and more inclusive rate of growth, it is equally imperative that we f

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