Disinvestment of equity shares in public sector undertaking
Summary :
Table of Contents
- Abstract
- Introduction
- Meaning of disinvestment
- Criteria for disinvestment
- Objectives of disinvestment
- Disinvestment strategy
- Disinvestment process
- Merits and demerits of disinvestment process
- Conclusion
- Reference
Abstract
public sector undertakings (PSUs) are companies established by the central government under the Companies Act or as statutory corporations under specific statues of parliament. PSUs were established in the early 1950s for rapid industrial and economic growth, to create necessary infrastructure, for employment generations, to promote balanced regional development and to assist the growth of other industries. In 1950s 58 industries were reserved for the public sector undertakings, which was brought down to 18 in 1991 and now it is 4. There are 35 PSUs in the BSE-200 index accounting for almost two-fifth of market capitalization, with an aggregate market capitalization of Rs. 3,84,600 crore.
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