Govt Keeps Third Party Option In Post Selloff Rights Issues

The government will have the option to nominate a third party to pick up its portion of the rights issue in case of companies planning an equity expansion post disinvestment.

According to top government officials, while the shareholding pattern of public sector undertakings cannot be altered for 1-2 years after disinvestment, the government can dilute its stake in these companies at a later stage.