Disinvestment means selling of a public investment to a ______:a)Private enterprisesb)Public enterprisesc)Capital marketd)Departmental enterprisesCorrect answer is option 'A'. Can you explain this answer?

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Humanities/Arts Exam > Humanities/Arts Questions > Disinvestment means selling of a public inves...

Disinvestment means selling of a public investment to a ______:

a)
Private enterprises
b)
Public enterprises
c)
Capital market
d)
Departmental enterprises

Correct answer is option 'A'. Can you explain this answer?

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Disinvestment means selling of a public investment to a ______:a)Priva...

Disinvestment is the process in which a certain percentage of shares of public sector units are disinvested to the private sector. It is also known as privatization.
The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs.
The government sells up to 50% or such a higher percentage of its ownership rights to private companies.
Disinvestment policy began with the introduction of economic reforms in 1991.
National Investment Fund was created in 2005 into which the proceeds from disinvestment of Central Public Sector Enterprises were collected.
The main reasons for disinvestment in India are:
- To meet the budgetary needs.
- To reduce the fiscal deficit.
- To improve public finance and overall economic efficiency.
- To diversify the ownership of PSUs for enhancing efficiency.
- To introduce competition in the market.

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Disinvestment means selling of a public investment to a ______:a)Private enterprisesb)Public enterprisesc)Capital marketd)Departmental enterprisesCorrect answer is option 'A'. Can you explain this answer?

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