Sebi May Take Up Psu Offer Waiver

The Securities and Exchange Board of India (Sebi) will meet here on Saturday to consider the annual accounts for 2000-01 and also take up the unfinished agenda of its July 9 board meeting in Delhi.

The board might also decide on the issue of whether public sector undertakings (PSUs) should be exempted from open offers.

The topic has cropped up time and again in case of strategic sell-off in listed public sector companies to private firms.

The markets regulator has been of the view that listed companies should be governed by the takeover regulations and, hence, any stake sale of over 15 per cent should be accompanied by an open offer.

According to sources, last time the issue was debated at the board meeting but nothing conclusive emerged following differences among the members.

The top brass of Videsh Sanchar Nigam Ltd, in which the government has invited bids for a strategic sale, on an individual basis sought Sebi chairman D R Mehta's views on the open offer issue saying that the entire exercise would delay the disinvestment. Mehta, however, only referred him to the Takeover Rules, sources said.

Other government companies for whom bids have been invited from strategic investors are - IBP, CMC, IPCL and the Shipping Corporation of India.

The other issue likely to be discussed is whether public sector companies should be subject to the same rules as private sector companies with regard to board composition, senior management selection and related issues.

There were rumours in the market today that Sebi would also take another look at badla - in view of the brokers' strike on Monday and demonstrations held over the issue.

While these developments are expected to be discussed at the meeting, Sebi officials refused to confirm whether any decision was forthcoming or whether even it would even reconsider its decision to do away with badla.