Cabinet approves reduction of govt's equity in select CPSEs below 51%, while retaining management, control

New Delhi [India], Nov 21 (ANI): The Cabinet Committee on Economic Affairs accorded 'in-principle' approval for enabling reduction of central government's paid-up share capital below 51 per cent in select CPSEs, while retaining the management and control on case-to-case basis, taking into account the government shareholding and shareholding of government-controlled institution.

An official release on Wednesday said the decision is intended to widen the bandwidth of the disinvestment window in select Central Public Sector Enterprises (CPSEs).

It said this will also help in pursuing the objectives of disinvestment such as promoting efficient management of government investment and ensuring greater transparency.

"It would also increase the free float available in the market which may have positive impact on Foreign Portfolio Investments in Indian capital markets and in creation of wider investment space for retail and institutional investors and may increase in the market premium of CPSEs due to likely positive investors perception," the release said (ANI).