Union government would send a series of proposals to the cabinet. Among the proposals are the plan to launch a public sector undertaking (PSU) ETF (exchange traded fund).
The cabinet would also receive a proposal to ease the offer for sale (OFS) norms to facilitate easier trades through this mechanism.
The ministry is also moving a cabinet note to use the disinvestment proceeds for capitalisation of state-owned banks and financial institutions.
The finance ministry would soon send a note to the cabinet for setting up a financial holding company (FHC),
to ensure that banksÂ’ capital requirements are met with minimal contribution from the exchequer.
The proposed FHC would leverage its capital base to infuse funds into public sector banks, reports suggest. The government recently approved infusion of Rs 12,517 crore in the banks this fiscal.
The proposal, based on the recommendations of the Shyamala Gopinath committee, has the backing of the Reserve Bank of India (RBI). The ministry will also send its views on bank licence norms to RBI next week.
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