Listing of Central Public Sector Enterprises on Stock Exchanges to develop ‘People-Ownership’
The President’s Address to Joint Session of Parliament on 4th June 2009 and Finance Minister’s Budget Speech on 6th July, 2009, articulated the intention of the Government to encourage people participation in the disinvestment programme. It had been mentioned that public sector undertakings are the wealth of the nation, and part of this wealth should rest in the hands of the people while retaining at least 51% Government equity in our enterprises.
Now, Government has decided: (i) all profitable listed CPSEs should meet the mandatory listing of 10% public ownership; and (ii) all unlisted CPSEs having positive networth, no accumulated losses and having a net profit in the three preceding consecutive years should get listed on the stock exchanges.
The disinvestment proceeds would be channelized into the National Investment Fund (NIF). The corpus comprising deposits from April 2009 till March 2012 would be available in full for investment as capital expenditure in specific social sector schemes determined by Planning Commission and Department of Expenditure. The status quo ante of NIF will be restored from April 2012.