Employees st public sector units (PSUs) will now get an option to subscribe up to 5% of the issue size at a discount after the completion of disinvestment in the concerned state-owned company.
Seeking to encourage employee participation in the PSU disinvestment through the offer for sale (OFS) option, the Department of Disinvestment (DoD) had sought approval from the Securities and Exchange Board of India for allotting shares to employees at a discount of 5% to the last cut-off price.
"SEBI has concurred with disinvestment department's scheme of employee OFS. We will be selling shares to interested employees at a 5% discount over the last cut off price in that OFS," a government official said.
Employees of such firms in which OFS was undertaken after December would be given the option to buy shares, with 5% of the issue size to be offered to them.
To start with, the DoD will offer shares to employees in Nalco, Oil India, Rashtriya Chemical and Fertilisers and this would be followed up with SAIL, MMTC and others.