Sebi ready to relax rules for PSU divestment

G N Bajpai, chairman, Securities and Exchange Board of India (Sebi), said the market watchdog is willing to relax public issue norms to facilitate the disinvestment of public sector undertakings (PSUs).

Bajpai was speaking to newspersons on the sidelines of a seminar organised by the Institute of Chartered Accountants of India (ICAI).

Recently, the Union ministry for disinvestment had made an application to Sebi asking it to relax certain norms for the disinvestment of its stake in the Oil and Natural Gas Corporation (ONGC) and GAIL India.

The ministry had requested that the price band should be announced only a day before the beginning of the actual bidding for the book-building process and also the criteria for a minimum 25 per cent float should be relaxed.

"The regulator will do whatever is necessary to facilitate the disinvestment process," Bajpai said.

On the proposed public float for ONGC and GAIL, Sebi said it would relax norms, if necessary, for the divestment of these listed PSUs.

The relaxation in norms, he said, would provide more depth and liquidity in the market.

Bajpai also said Sebi was on "high alert" with regard to the market and was also closely monitoring the futures and options positions being built up.

Sebi has also joined hands with the ICAI for the effective monitoring of the corporate sector.