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Consider the following statements:
1. Disinvestment is when organizations liquidate their assets or subsidiaries.
2. India has continuously achieved its disinvestment targets for the last 5 years.
3. Narasimham Committee has suggested reducing the government’s stake in Public Sector Banks.
Which of the above statements is/are correct?
  • a)
    1 and 2 only
  • b)
    2 and 3 only
  • c)
    1 and 3 only
  • d)
    1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Consider the following statements:1. Disinvestment is when organizatio...
In News: The Government has decided to privatise two Public Sector Banks (PSBs) along with IDBI and General insurance.
Statement 1 is correct. Disinvestment is the process when the government decides to reduce its stake from any public company. Disinvestment can be by privatisation, public listing or partial sale of shares. In other words, Disinvestment is when governments or organizations sell or liquidate assets or subsidiaries.
Statement 2 is incorrect. The disinvestment targets are highly underachieved except for the last two years viz. 2017-18 and 2018-19.
Statement 3 is correct. Narasimham Committee, P J Nayak Committee both have suggested the government to reduce its stake in Public Sector Banks to 33% and less than 50% respectively.
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Consider the following statements:1. Disinvestment is when organizations liquidate their assets or subsidiaries.2. India has continuously achieved its disinvestment targets for the last 5 years.3. Narasimham Committee has suggested reducing the government’s stake in Public Sector Banks.Which of the above statements is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
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