The government today said it will pay a commission to brokers selling public offers of state-run firms, in an attempt to woo retail investors for its ambitious disinvestment programme.
The government, which till now paid little of no commission to brokers, has fixed a commission of 0.35 per cent for selling shares to retail investors and 0.15 per cent for roping in HNI clients.
"After consulting with brokers we have done the changes and the commission for brokers have been fixed at 0.35 per cent for retail investors and 0.15 per cent for HNIs," Disinvestment Secretary Sumit Bose told reporters here.
The changes are done to attract more retail demand in the public offers, he said.
Earlier, the commission paid was included in the fees of the book running lead managers (BRLMs). "Now the government will reimburse this commission to the BRLMs for the brokers," he added.
The new provisions will be applicable in all the forthcoming public issue starting with state-run power producer Satluj Jal Vidyut Nigam. SJVNL's public issue opens tomorrow.
"The new norm will be applicable to all subsequent issue, starting with SJVNL," Bose said.
The government is selling 10 per cent of its equity shares in SJVNL through an initial public offering (IPO). The price band has been fixed at Rs 23-26 per share.
The government has set a target of Rs 40,000 crore through disinvestments in the current fiscal.
