Question

Disinvestment of PSE's implies

(a) Sale of equity shares to private

(b) Closing down operations sector/public

(c) Investing in new areas

(d) Buying shares of PSE's

Answer 1

Disinvestment refers to the process of selling equity shares of a public sector enterprise to the private or the public sector. Through disinvestment, the ownership of the government in a PSE gets diluted, and simultaneously, the quantum of shares held by the private sector in that enterprise increases.

Hence, the correct answer is option (a).