Sebi’s capital market reforms will help PSUs capitalise: Sandeep Parekh

In a chat with ET Now, Sandeep Parekh of Fin Sec Adv shares his views on the new reforms by Sebi. Excerpts:

ET Now: SEBI has raised anchor investment limit to 60 per cent from the current 30 per cent. All PSU companies are going to have 25 per cent public holding in three years. Your first reaction.

Sandeep Parekh: The minimum public shareholding in public sector units is big news. The kind of numbers involved is fairly large. Also, from qualitative perspective it is a significant development because this really enhances transparency and accountability of public sector companies. So that is kind of the biggest take away. In addition, I guess the anchor investor is kind of marginal development. I have not analysed it as of now. I am not sure how the OFS kind of development is going to be impactful or not.

ET Now: This should make the PSU lot very happy. There is a reason why PSU stocks have been the flavour of the fortnight and are really flying high.

Sandeep Parekh: Yes, it should make everybody happy. We are going to have equal markets. There is going to be more accountability and transparency and it will be easier for the public sector units to capitalise and the government gets money. It is good for their financials. So a kind of win-win situation for everybody involved.