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Govt removes criteria for CPSEs to improve share price over sectoral index

Among other key criteria, the MoU has now assigned 2 marks out of 100 for procurement from GeM portal as percentage of total procurement

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The revised MoU assigns five marks for acceptance or rejection of goods and services by CPSEs through the TReDS (Trade Receivable Discounting System) portal within stipulated time

Nikesh Singh Asit Ranjan Mishra

3 min read Last Updated : Oct 13 2022 | 11:23 PM IST

The Centre has withdrawn the criteria asking listed central public sector undertakings (CPSEs) to increase their share price over the BSE Sectoral Index.

In the revised memorandum of understanding (MoU) guidelines for 2022-23 (FY23) released on Thursday, the Department of Public Enterprises has instead sought to benchmark CPSEs, based on the performance of the top/bottom 25 companies on the S&P BSE 500 Index in order of market capitalisation (m-cap).

Business Standard had reported on September 26 quoting anonymous CPSE officials who said that the target to improve share price could tantamount to stock price manipulation and was aimed at helping

Topics : CPSEs central public sector enterprises TReDS

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