Listing PSUs will make them disciplined: Bhave

Market regulator Sebi today said listing of state-owned entities would make them disciplined and bring them under investors and regulator's scrutiny, while welcoming the government's ambitious disinvestment programme.

"I think PSUs coming into listing is a good thing because listing does impose its own discipline", SEBI chairman C B Bhave told PTI when asked about the announcement by Finance Minister Pranab Mukherjee that government would divest stake in these undertakings but retain at least 51 per cent stake.

Asked if PSUs like NHPC and Oil India would get extension if they are unable to come out with the public issue within the stipulated time, he said Sebi's nod has one-year validity and the same rules would apply to them.

As per the clearances given by Sebi for the draft shareholding prospectus, the two PSUs have time till September to launch their public issues and in case it is delayed beyond this point, they will have to start the process afresh.

"The first thing (that it will do is, if PSUs)... Want any additional capital you have to go by what capital raising norms for listed companies are", Bhave said.

Secondly, he added, the listing will subject PSUs to the financial discipline as their activities would be wathced everyday by the stock market. "The stock market (will be) making a judgement on what you are doing", he added.