With less than two months to go for the 25 per cent minimum public shareholding (MPS) deadline for public sector undertakings (PSUs), there seems to be little action by the government. The Centre will need to divest stakes in 25 PSUs worth nearly Rs 21,000 crore before August 21 to meet the norms. However, there is little chance that the divestment will take place. The rules for MPS are set by the government under the Securities Contracts Regulations Rules (SCRR).
The Securities and Exchange Board of India (Sebi) ensures its implementation. The government will have to tweak the SCRR before August to provide leeway to the 25 PSUs.