INSUBCONTINENT EXCLUSIVE:
New Delhi: The government is examining suggestions to allow fragmentation of shares for greater retail participation, while also seeking a
review of the limits on bank loans against shares.
The two issues were flagged at a meeting of market players, experts and economists with
value of Rs 10 closed at Rs 71,730 on the BSE on Friday
While it is possible to split such shares and allow for a smaller face value but even at that price, it may be unaffordable.
The discussions
come at a time when the government has announced the listing of LIC, which many expect would be among the most valuable companies to trade
Given the small equity base, even a 5 per cent float will mean that the issue price is very high, making it unaffordable for retail
This is expected to result in the government having to pump in money to expand its capital base.
Sources present in the meeting said that
there were some issues related to NBFCs, which were flagged at the meeting and the department of financial services is expected to seek