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Drumbeat: Ad Buzzaar
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Tuesday, May 26, 1998
Divest in local market first, says Sebi
Sitanshu Swain
Mumbai, May 25: The Securities and Exchange Board of India (Sebi) has, in its pre-budget memorandum to the finance ministry, reiterated that disinvestment of PSUs in the local market should take precedence over the GDR market. This will be the only way to boost investor sentiment here, the regulatory body has said.The major deterrent to the PSU divestment process in the local market is the high price of the scrip and Sebi believes that this can be overcome if these are offered at a discount. For instance, the IOC scrip is ruling at around Rs 615 on the Bombay Stock Exchange and an offer of Rs 500-550 could lure the investor to pick up a Fortune 500 share. This rule need not extend to all PSU scrips, according to analysts. For instance, Gail is being quoted at around Rs 115 on the BSE, which is reasonable for the local investor. Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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