Public sector units may open up now. The Department of Disinvestment (DoD) likes to see listed public sector undertakings (PSUs) in more proactive mode in having investor contact and keep them updated on company plans. This will translate into better marketability and facilitate a share sale on short notice.

In a detailed note, the DoD has suggested to the Department of Public Enterprises that listed PSUs should be encouraged to organise conference calls with investors, merchant bankers and analysts after quarterly results. This kind of interaction is a normal practice with the private companies.

Educated retail investors will lap up shares of the company as when they offered, even at a short notice period. The DoD has already taken up the issue of reducing the time period between the announcement of an Offer for Sale (OFS) and actual sale.

Sebi had in June allowed companies to disclose OFS plans two banking days prior to the share sale -- a move that has led to most PSU share sales taking place on Mondays as the DoD does not want trading days in-between the announcement and stake sale.

The DoD had asked Sebi to reduce the time gap between announcement and actual sale to T-1, which is one trading day before OFS.

The government has set a target of raising Rs 69,500 crore through disinvestment in current fiscal. So far due to volatile market conditions, only Rs 12,600 crore has been raised through stake sale in four PSUs.