Centre softens stance on i-banks for PSU mandate

Allows private placements of equity in rival firms; limits conflict clause to specific sub-sectors

To ensure success of its 2017-18 disinvestment target, the government is taking an easier approach towards investment banks participating in public sector undertaking (PSU) share sales.

The department of public asset management (Dipam), the government body in charge of divestment, has allowed investment banks with PSU mandates to take up certain types of capital market offerings by rival companies in the private sector.

The move comes after some lenders, including Deutsche Bank, raised concerns over the ‘conflict of interest’ clause applicable for the share sale mandate in seven PSUs, including Indian Oil and NTPC. Recently, the government floated a Request