The government has been thinking of raising funds through the buyback route as it has not been able to raise money through sale of equity in public sector units on account of uncertainty in the stock markets
New Delhi: The Disinvestment Department has prepared a list of cash-rich public sector undertakings (PSUs) which can buy back government equity and help it meet the ambitious Rs40,000 crore disinvestment target during the current fiscal, reports PTI.
The government has been thinking of raising funds through the buyback route as it has not been able to raise money through sale of equity in public sector units on account of uncertainty in the stock markets.
“The government is open to raise funds through the buyback route as part of the disinvestment exercise. We are thinking of innovative ways to meet the target,” a disinvestment ministry official told PTI.
Under the buyback mode, the government can raise money by selling its equity in the company to the concerned PSU itself.
The official said about two dozen PSUs have large surplus cash balance like SAIL, NMDC, ONGC, NTPC, Coal India, Oil India and MMTC.
Such companies may be asked to buy back about 5% equity from the shareholders. Under the current regulations, market regulator Securities and Exchange Board of India (SEBI) allows companies to buy back their own equity from shareholders.
The official said the government is yet to decide on whether to adopt the auction route for stake sale in PSUs.
With only Rs1,145 crore in its kitty so far from disinvestment, there are apprehensions whether the mammoth target of Rs40,000 crore for this fiscal would be met.
Volatile stock market conditions have forced government to delay stake sale in PSUs. Global equity markets have been on a downside on fears of a slow recovery in the Eurozone economies as well as the debt crisis in US.
In view of uncertain market conditions, companies like SAIL and Hindustan Copper (HCL) have deferred fresh equity issue, though the government may still go ahead with its proposal to offload stake.
Last fiscal, the government raised Rs22,763 crore through sale of equity in public sector enterprises.
All-India State Bank Officers Federation general secretary GD Nadaf claimed that the management has agreed to their demand for adequate compensation to officers working on holidays. It has also given assurances on issues related to transfers and promotion of staff to officer cadre, he added
New Delhi: The officers’ union of State Bank of India (SBI) has called off a two-day nation-wide strike that was to begin on 8th November after the management conceded to some of their demands, a development that comes as a relief to over 14 crore customers of the bank.
“The strike has been deferred as understanding on certain issues has been reached with the management,” All-India State Bank Officers Federation (AISBOF) general secretary GD Nadaf told PTI.
Keeping in mind the convenience of customers and reputation of the bank, the union decided to defer the two-day countrywide strike, he said, adding that dialogue with the management is still ongoing with respect to the remaining issues.
Mr Nadaf claimed that the management has agreed to their demand for adequate compensation to officers working on holidays. The management has also given assurances on issues related to transfers and promotion of staff to officer cadre, he said.
The nation’s largest lender, which has over 13.60 crore customers, has about 13,560 branches spread across the country.
On Saturday, SBI chairman Pratip Chaudhuri had appealed to the union to withdraw the proposed strike.
“We expect and hope that the strike will be called off. We have not estimated our losses on account of the strike yet.
More than the loss of money, it will damage the confidence of our customers,” he had said.
Had the strike not called off, customers of the bank would have faced an outage of branch services for five days, beginning Sunday.
While Monday and Thursday are public holidays, banking operations would have been hit on Tuesday and Wednesday due to the strike called by the union.
The markets will remain closed on account of ‘Bakri Id’
Mumbai: The Bombay Stock Exchange (BSE), the National Stock Exchange (NSE), foreign exchange, money as well as oils & oilseeds and solvent markets will remain closed today for ‘Bakri Id’.
However, other markets, including bullion, will remain open.