what is meant by disinvestment of shares of non-stategic public sector enterprises?
what is meant by disinvestment of shares of non-stategic public sector enterprises?
Disinvestment is a process in which the public undertaking reduces its portion in equity by disposing its shareholding. “Disinvestment” as per SEBI guideline, means the sale by the central government/state government, of its shares or voting rights and/or control, in PSUs. The government retains partial control with it and disposing itsholding to some extent. The disinvestment reduces government participation in the company. There are two approaches to disinvestment programme.
• According to first approach, whenever government sell its equityholding to PSUs to public or private parties, financial institutions and mutual fund etc. It is called disinvestment.
• According to second approach, when PSUs are generally directed by the government to issue their equity share to public, private parties, financial institution and mutual fund with a view to reduce its control that is also taken as disinvestment.
Disinvestment is a process in which the public undertaking reduces its portion in equity by disposing its shareholding. “Disinvestment” as per SEBI guideline, means the sale by the central government/state government, of its shares or voting rights and/or control, in PSUs. The government retains partial control with it and disposing itsholding to some extent. The disinvestment reduces government participation in the company. There are two approaches to disinvestment programme.
• According to first approach, whenever government sell its equityholding to PSUs to public or private parties, financial institutions and mutual fund etc. It is called disinvestment.
• According to second approach, when PSUs are generally directed by the government to issue their equity share to public, private parties, financial institution and mutual fund with a view to reduce its control that is also taken as disinvestment.
