New Delhi, Aug. 31 (PTI): Retail investors can now have a bigger share in the PSU stake sale, with the government doubling the quota under the offer-for-sale (OFS) route for them to 20 per cent.
“We have changed the retail investor quota in the offer-for-sale route. All future disinvestments will now have 20 per cent quota for small investors,” a senior finance ministry official said.
At present, the retail investor quota in OFS is 10 per cent, while 30 per cent are reserved for them in the follow-on public offer (FPO).
“The decision has been taken after consultation with Sebi. The move will increase participation of small investors in the disinvestment programme,” the official added.
Under the OFS mechanism, a minimum of 25 per cent of the shares offered are reserved for mutual funds and insurance companies.
The government has been using the OFS route for divestment of PSUs.
Market regulator Securities and Exchange Board of India (Sebi) had in January 2013 permitted the promoters of top 100 companies to use auctions, or the OFS, route to dilute stake in listed companies.
It also permitted OFS for PSUs meeting the minimum 25 per cent public holding norm.