In the name of relaxation of investment norms for the public sector
Units,the government is planning to shift the surplus fund of the cash-
rich PSUs to the private sector.
At present PSUs are allowed to invest their funds only in public sector
Mutual funds.According to the new proposal,there will be certain limit
for investing in public mutual funds and PSUs should be allowed to
invest rest of their fund in the private sector mutual funds.However
there is no mention about the percentage of surplus funds that PSUs
would be required to invest in public sector mutual funds.
The proposal is reported to be part of a report prepared by a committee
of the Department of Public Enterprises which was constituted to review
guidelines on investment of excess funds available with the cash-rich
PSUs.
Once it is approved,the government is certain to dictate the PSUs to
invest in a particular private sector of their choice and the PSUs may
lose their fund for ever.
What an easy method of making the cash rich PSUs to sick PSU s.