It's no secret that the lack of clarity of ONGC’s subsidy sharing mechanism has been a hurdle in the government stake sale plans. Speaking to CNBC-TV18’s Sapna Das, Divestment Secretary Aradhana Johri outlined the remedial steps that her department is taking to ease investor concerns.
The Department of Divestment is batting strongly to tighten the market surveillance on the day of big offer for sale (OFS) especially after the Coal India case.A couple of suggestions have been given to Securities and Exchange Board of India (Sebi) which includes communication to the market regulator itself that the OFS should be cut from T-2 to T-1, which was practiced earlier.
The market surveillance like circuit breakers should be tightened and there must be further rules on that front from Sebi.
In cases of very large divestments trading should be stopped on the day OFS actually unfolds. The secretary did indicate that a lot of debate has happened in the public after these kinds of recommendations the Department of Divestment have given to Sebi and that has come out in the open. Even under these circumstances if need be big stake sale has to take place on a Saturday.
The department from their end would not be closed towards it and would be very much open. However, Sebi being the market regulator having other concerns in mind has not really come back to the Department of Divestment on this front.
In terms of the CPSE ETF because that will be important in terms of retail participation, the government is trying to tweak certain rules, they are trying to tweak the product, make it more retail-investor friendly. They are in a dialogue right now with the AMC concerned and will be taking Sebi's nod very soon on this front.
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