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Disinvestment of PSE's implies - Business Studies

MCQ

Disinvestment of PSE's implies

Options

  • Sale of equity shares to private sector / public

  • Closing down operations

  • Investing in new areas

  • Buying shares of PSE's

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Solution

Hence, the correct answer is Sale of equity shares to private sector / public
Disinvestment refers to the process of selling equity shares of a public sector enterprise to the private or the public sector. Through disinvestment, the ownership of the government in a PSE gets diluted, and simultaneously, the quantum of shares held by the private sector in that enterprise increases.

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