"There is a thinking that PSU definition should be maintained with government holding of, say, 40% or 26% in case of certain non-strategic entities. Under the present definition, CPSEs are companies in which the direct holding of the central government or other CPSEs is 51% or more. It will still allow the Centre to be the largest shareholder especially in companies like NTPC, Powergrid, BHEL, where public shareholding is already very high. Market regulator SEBI also wants PSUs to increase public float to at least 25 per cent. If the PSU definition is changed, it would be easier for the government to mobilise funds even in a choppy market as PSUs could be asked to buy back government shares.

Source: Mint April 09, 2019 12:23 UTC