NEW DELHI, Oct 20: The Department of Investment and Public Asset Management (DIPAM) has asked its officials to refrain from trading in shares of public sector companies as they may be privy to market-sensitive information with regard to state-owned companies, an official said.
In an internal order, the DIPAM said that any officer joining the department would be required to declare his/her holding in public sector enterprises and such shares could only be liquidated by the official concerned after approval from authorities.
DIPAM, under the Ministry of Finance, manages government equity in public sector companies and is also responsible for undertaking minority stake sale, strategic disinvestment and privatisation.
DIPAM has issued an internal order saying that officers in the department will not buy or share shares of state-owned companies. The idea behind this is officials in DIPAM may be privy to some information which can be affecting the share prices of companies. It should not be so that they stand to benefit from that information,” the official told PTI.
The official further said that while DIPAM is working towards maximising the value of CPSE shares, it should be clear that there is no way that price-sensitive information is being misused in any way.
The government has sold CPSE shares worth Rs 16,507 crore and Rs 35,294 crore in 2023-24 and 2022-23 fiscals. In the current fiscal, it has raised about Rs 5,160 crore from share sales in GIC and Cochin Shipyard.
DIPAM deals with all matters relating to the sale of central government equity through offer for sale or private placement or any other mode in the CPSEs as well as strategic disinvestment of CPSEs.
The department also advises the Government in matters of financial restructuring of central public sector enterprises (CPSEs) and for attracting investment in the said Enterprises through the capital market. (PTI)
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