Question

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

Answer 1

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.