Abolish 25% margin money in PSU share auction: Sebi told

The finance ministry has written to Sebi to do away with the 25 per cent margin money requirement for institutions bidding during the PSU stake sale through the auction route. The ministry, according to official sources, has also urged Sebi to extend the time for accepting bids by bourses to 5:30 pm from 3:30 pm during the auction process. These suggestions, they said, would help generate more demand during the stake sale process, as investors would not have to worry about providing funds upfront for making bids. “We have written to Sebi to abolish margin money, at least for institutional investors. It will help generate better response for PSU shares,” the official said.