Question

Which of the following can be defined as the process in which the government sells a majority stake to one or more companies while the government still owns it and remains as a minority stakeholder?

A Divestment Correct Answer Incorrect Answer
B Displacement Correct Answer Incorrect Answer
C Delegation Correct Answer Incorrect Answer
D Divergence Correct Answer Incorrect Answer

Solution

Disinvestment refers to the selling of the government's stake in public sector undertakings (PSUs) and other assets. It is a process by which the government sells a part or whole of its shareholding in a public sector enterprise to private entities or the public.

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