Commencement of Disinvestment Process

Following the Finance Minister’s announcement in Budget 2009 to undertake disinvestments, the Government has now announced stake sales in 25 public sector companies through public offers. Its zeal to ensure the success of these public floats of shares is evidenced by a proposal to grant significant powers to the Department of Disinvestment. The truth, however, is that disinvestments tend to be a complex exercise, which is borne out by the fact that legal issues emerging from the previous round of disinvestments initiated a few years ago yet remain unresolved (although those pertain to stake sale in favour of strategic partner rather than a public offer of shares – here and here).

About the author

Umakanth Varottil

Umakanth Varottil is an Associate Professor at the Faculty of Law, National University of Singapore. He specializes in corporate law and governance, mergers and acquisitions and cross-border investments. Prior to his foray into academia, Umakanth was a partner at a pre-eminent law firm in India.

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