Why perpetuate differential treatment?

In the concluding part, the authors explain why, in spite of strong performance by many PSUs, they are generally getting a "governance discount" instead of a "governance premium" in their share prices

In part I of this article, we discussed how the mechanism of having special provisions in laws/rules/circulars was used by the government to perpetuate differential treatment to public sector undertakings (PSUs) in corporate governance norms. We will now discuss the other two mechanisms. The first is through special provisions in the regulations framed by regulators or the case by case exemptions routinely granted to PSUs.

Under the Substantial Acquisition of Shares and Takeover Regulations, 2011, an acquirer is required to make an open offer to acquire shares or voting rights to public shareholders of the target company. There are strong protection