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Question

For disinvestment of public sector shares, ___________ should be sufficiently developed.

A
money market
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B
commodity market
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C
bullion market
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D
capital market
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Solution

The correct option is D capital market
Disinvestment means disposal of equity of public sector units in the market. Disinvestment is one of the operational measure of privatization.Privatization in India generally is in the form of disinvestment of equity. For disinvestment of public sector shares, capital market should be sufficiently developed. Capital market refers to the financial market where long-term debt and equity securities are bought and sold.

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