Not just that. FIs do not help in value-creation through M&A and are impediments to industries becoming competitive.

Finally if they decide to sell, chances are that they have been directed to do so by their political masters. FIs are opaque, their actions are illogical and they continue to hold stakes in companies where returns are negligible to nothing.

These FIs should go for open market sale or strategic sale of their corporate stakes and use M&A opportunities as vehicles to restructure their portfolios. Such a move has a twin potential: turn the FIs market-driven and create alongside a market for corporate control.

When that happens, M&A should take off vertically in India.