To help push Centre’s recapitalisation initiative for PSUs, Security and Exchange Board of India (SEBI) may give a waiver to state-run entities in case public shareholding falls less than 25 percent and relieve them from open offer if they raise holding by more than 5 percent in one financial year.
NDA Government is planning to allocate Rs 70,000 crore spread over four years towards recapitalisation of PSU banks to contain risks in the banking industry.
Already, It has infused Rs 22,915 crore capital in 13 lenders, including SBI and Indian Overseas Bank, to recuperate loan growth that has hit a two-decade low.
The infusion will surge in some cases shareholding of the promoter, that is government, beyond 75 percent.
In other cases, promoter holding may go up by more than five per cent in one financial year, which would trigger an open offer.
Reports said that likely waiver is intended at providing the government an escape route from the mandatory requirements.