The new disclosure requirements will be applicable to PSU issues from now on.
"The conditions are not restrictive.
"These are minor conditions which will be included in the RFP (Request for Proposal). These will be more of reporting and disclosure in nature," Sumit Bose, Union disinvestment secretary, told Business Standard.
Bose was in Mumbai to launch the government's Rs 40,000-crore (Rs 400-billion) divestment programme for 2011-12 with the Rs 4,660-crore (Rs 46.6 billion) Power Finance Corporation follow-on public offer.
The new disclosure requirements would start with the RFP for National Building Construction Corporation Ltd, to be soon put up, he added.
The changes, Bose confirmed, were a sequel to the legal opinion sought after the seeming conflict of interest in the FPO of Steel Authority of India.
Four bankers handling the SAIL issue -- SBI Capital, Desutsche Equities, HSBC Securities and Kotak Mahindra -- were also engaged by SAIL's private sector competitor, Tata Steel Ltd, to manage its own FPO.
While Tata Steel successfully raised money in February, the SAIL FPO is yet to hit the market.
Bose said SAIL was a one-off case and was unlikely to be repeated in future.
Merchant bankers for PSU issues are selected through a bidding system by the department of disinvestment. Since the mandate typically goes to the lowest bidder, merchant bankers have been quoting near-zero fees to win the large PSU
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