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  • Special National Investment Fund

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    Virendra Pratap
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    The Cabinet Committee on Economic Affairs approved the creation of a Special National Investment Fund to meet the minimum 10% public shareholding requirement in six Central Public Sector Enterprises. These companies - Andrew Yule & Company Ltd., Fertilizers & Chemicals (Travancore) Ltd., Hindustan Photo Films Manufacturing Co. Ltd., HMT Ltd., ITI Ltd., and Scooters India Ltd. - were not financially sound and unable to meet the requirement through regular methods. The fund will receive government shares in the six companies, be managed by independent professionals, and sell the shares over five years with proceeds going to social sector schemes.

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    Special National Investment Fund

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    The Cabinet Committee on Economic Affairs approved the creation of a Special National Investment Fund to meet the minimum 10% public shareholding requirement in six Central Public Sector Enterprises. These companies - Andrew Yule & Company Ltd., Fertilizers & Chemicals (Travancore) Ltd., Hindustan Photo Films Manufacturing Co. Ltd., HMT Ltd., ITI Ltd., and Scooters India Ltd. - were not financially sound and unable to meet the requirement through regular methods. The fund will receive government shares in the six companies, be managed by independent professionals, and sell the shares over five years with proceeds going to social sector schemes.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    4 views1 page

    Special National Investment Fund

    Uploaded by

    Virendra Pratap
    The Cabinet Committee on Economic Affairs approved the creation of a Special National Investment Fund to meet the minimum 10% public shareholding requirement in six Central Public Sector Enterprises. These companies - Andrew Yule & Company Ltd., Fertilizers & Chemicals (Travancore) Ltd., Hindustan Photo Films Manufacturing Co. Ltd., HMT Ltd., ITI Ltd., and Scooters India Ltd. - were not financially sound and unable to meet the requirement through regular methods. The fund will receive government shares in the six companies, be managed by independent professionals, and sell the shares over five years with proceeds going to social sector schemes.

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    © All Rights Reserved
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    of 1

    Print Release

    Page 1 of 1

    Press Information Bureau


    Government of India
    Ministry of Finance
    02-August-2013 13:44 IST

    Creation of the Special National Investment Fund


    The Cabinet Committee on Economic Affairs has approved creation of the Special National Investment Fund for
    the specific objective of meeting the minimum public shareholding of 10 percent requirement in the following six
    Central Public Sector Enterprises (CPSEs).
    (i) Andrew Yule & Company Ltd.
    (ii) Fertilizers & Chemicals (Travancore) Ltd.
    (iii) Hindustan Photo Films Manufacturing Co. Ltd.
    (iv) HMT Ltd.
    (v) ITI Ltd.
    (vi) Scooters India Ltd.
    Since these Companies were not financially sound, it was found difficult to meet the minimum public
    shareholding by following SEBI approved methods. However, Government was keen to comply with the
    requirement in all Government Companies. The Department of Disinvestment discussed the matter with SEBI and
    has proposed to meet the minimum public shareholding in the above six Companies.
    The salient features of the Fund are:
    (i) The number of shares that is required to make the six Companies compliant with the minimum public
    shareholding will be transferred to the Special National Investment Fund out of Government of India shareholding
    on irrevocable basis without any consideration.
    (ii) The Fund will be managed by independent professional Fund Managers.
    (iii) The Fund will sell the shares within a period of 5 years.
    (iv) The funds realized from the sale of shares would be used for social sector schemes of the Government.
    (v) The modalities of the sale of shares in the Fund would be decided by the existing EGoM.
    Vide Securities Contracts.(Regulations) (Second Amendment) Rules, 2010 dated 09th August, 2010 all
    Government Companies are required to have at least 10% public shareholding and where public shareholding is
    less than 10%, the Companies were required to comply with this condition within a period of 3 years by following
    methods permitted by SEBI for this purpose.
    ***
    SC/NK/SKS

    http://pib.nic.in/newsite/PrintRelease.aspx?relid=97570

    8/2/2013

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