Sebi board to meet on Tuesday, discuss disinvestment guidelines

The Securities and Exchange Board of India, the capital market watchdog, board meeting will take up the issue of public sector undertaking or PSU disinvestment guidelines. It is learnt that the board is looking to change norms to allow government owned companies to help meet divestment targets. The government wants to raise Rs 40,000 crore through disinvestment before the end of current fiscal in March 2012. The board is expected to meet on Tuesday in Mumbai. The regulator is also expected to take up the issue of allowing promoters of companies to sell shares through an auction on stock exchanges. This process will make it easier for promoters looking to offload a portion of their shares. It is also slated to be quicker that a public offering of shares. Moreover, sources say that SEBI is also looking to allow promoters of companies owing more than 75 per cent equity to lower their holding. It will discuss this proposal at the meeting. SEBI may now allow companies to issue fresh shares through a new route called Institutional Placement Programme (IPP). According to an earlier ruling, SEBI had directed promoters holding more than 75 per cent stake to dilute their equity to 75 per cent or lesser levels through public offering of shares. It wanted to ensure that listed companies do not have less than 25 per cent public holdings. This proposed IPP method is said to be less time consuming than a full-fledged public offer.