A Parliamentary panel has asked the government to promote retail participation instead of selling shares of PSUs to institutions through the Offer For Sale (OFS) route. The panel is unhappy with the present disinvestment procedure. The panel is not in favour of ‘Offer for Sale’ of shares route by promoters through Stock Exchange Mechanism, instead the government should look for market penetration and encourage retail investors.
The Standing Committee on Finance headed by BJP leader Yashwant Sinha said in its report tabled in Parliament on
April 22. It also reiterated its earlier recommendation that the government should formulate a coherent disinvestment policy with clear direction and vision.
The report said that the committee regret to observe that in the absence of concrete disinvestment policy and lack of consistency in utilisation of disinvestment proceeds, the disinvestment proceeds of Central Public Sector Enterprises (CPSEs) over the years being treated as ‘selling family’s silver to pay grocery bills’.
All disinvestment proceeds being used for revenue expenditure are not socially justified, it said.
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