After these discussions, the government officials have opined that the government should not have any stake in the bank that is up for privatization.
This will make it difficult to convince the private players who are looking to invest that the government would not interfere in the board decisions.
This would instead drive away the private players, and if the government had no stake in the PSBs, more private players would be interested in buying the stakes.
The Indian Companies Act states that a shareholder with 10% of the paid up share capital of the company will be able to ask the board and organize an extraordinary general meeting.
Also, there are other ways in which the Government may be able to assure its presence and this might result in a restricted growth of the organization.
As we all know, the government has plans to sell of its stake in four of the Bank of Maharashtra, Punjab and Sind Bank, and Indian Overseas Bank and uco
This is still a developing story and we will keep you informed!
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