The Finance Ministry has written to market regulator Securities and Exchange Board of India (Sebi) to do away with the 25 per cent margin money requirement for institutions bidding during the PSU stake sale through auction route.
The ministry, according to official sources, has also urged the Sebi to extend the time for accepting bids by the stock exchanges to 1730 hrs from 1530 hrs during the auction process.
These suggestions, they added, will help generate more demand during the stake sale process as investors won't have to worry about providing funds upfront for making bids. 'We have written to Sebi to abolish margin money, at least for institutional investors. It will help in generating better response for PSU shares,' the official said, adding that as these are off-market deals they need not be restricted to equity market timings.
Trading in equity markets happen between 0900-1530 hrs. 'We have asked them to extend the time for share sale to 1730 hrs. . As per the existing norms, institutional investors have the option of submitting bids with 25 per cent margin money under the OFS or auction route.
The ministry, according to official sources, has also urged the Sebi to extend the time for accepting bids by the stock exchanges to 1730 hrs from 1530 hrs during the auction process.
These suggestions, they added, will help generate more demand during the stake sale process as investors won't have to worry about providing funds upfront for making bids. 'We have written to Sebi to abolish margin money, at least for institutional investors. It will help in generating better response for PSU shares,' the official said, adding that as these are off-market deals they need not be restricted to equity market timings.
Trading in equity markets happen between 0900-1530 hrs. 'We have asked them to extend the time for share sale to 1730 hrs. . As per the existing norms, institutional investors have the option of submitting bids with 25 per cent margin money under the OFS or auction route.