The Disinvestment Commission passes off into oblivion - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Dec 1, 1999 - The Disinvestment Commission passes off into oblivion

The Disinvestment Commission passes off into oblivion

Dec 1, 1999

In the absence of any official communication from the new government the term of the first Disinvestment Commission came to an end on the 30th of November. The Chairman, Dr G V Ramakrishna, along with the other members of the commission, has already submitted his resignation in view of the installation of the new government at the centre. The Disinvestment Commission had laid down five major suggestions for the manner in which the entire exercise should be conducted:

  • Delinking the disinvestment exercise from the budget
  • Selling shares of public sector units at an opportune time
  • Retailing shares in the domestic market
  • Proceeds from the disinvestment to be used for infrastructure and retiring public debt
  • Setting up of a full time implementation machinery

The first of these suggestions state that the proceeds should not be used to finance the budget deficit of the government. Infact the proceeds should be used for other purposes that have been explicitly stated. The government seems to have put into practice only the recommendation pertaining to the retailing of shares in the domestic market.

The absence of the commission will create a vacuum in the disinvestment process. Although, most of the recommendations of the commission are yet to be implemented, having a full time authority looking at the disinvestment issue in a professional manner brought in a degree of transparency in the entire process. The government needs to put in place another commission as soon as possible to ensure that an independent body continues to guide the disinvestment process. This will limit the level of politicisation of the entire process.

Equitymaster requests your view! Post a comment on "The Disinvestment Commission passes off into oblivion". Click here!

  

More Views on News

Ride the Indian Real Estate Revival with this 'Different' Smallcap Stock (Profit Hunter)

Mar 23, 2021

Affordability in the housing segment has never been so good in last one and a half decade. Here's how you could make the most of it...

My Latest Stock Recommendation (Fast Profits Daily)

Oct 9, 2020

How I picked an exciting stock using trends from both the commodity and equity markets.

Data is the New Oil but It's Also the New Sugar. Here's How to Fight it (Profit Hunter)

Jun 1, 2020

Is too much data hurting your quest for market beating returns?

Quantum Mutual Fund: Hum woh nahi hain (The Honest Truth)

Apr 29, 2020

Ajit Dayal on how the mutual fund industry robs you of your wealth.

This One Trigger Could Turnaround Yes Bank's Stock Price (The 5 Minute Wrapup)

Oct 16, 2019

If Yes Bank manages to do this, it could be the start of a much-needed turnaround for the bank.

More Views on News

Most Popular

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

Top 3 Nifty ETFs to Buy Now (Fast Profits Daily)

Apr 20, 2021

In this video I tell you the three Nifty ETFs I think are the best.

A Stock with 700% Return Potential Comes with Additional Payoffs (Profit Hunter)

Apr 15, 2021

Narayana Murthy was one of the first unicorn founders to get the backing of this entity...

11x Bankruptcy to Bluechip Stock: A Rare India Revival Story (Profit Hunter)

Apr 16, 2021

There is no stopping this 11-bagger stock from significant upside.

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS