The Hindu : SEBI nod for ONGC PNs

Online edition of India's National Newspaper
Wednesday, Mar 03, 2004

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SEBI nod for ONGC PNs

NEW DELHI, MARCH 2. In what could be a major boost to the forthcoming public offer for sale of 10 per cent equity in state-owned ONGC, the market regulator, Securities and Exchange Board of India, has permitted lead managers and book runners to issue participatory notes for attracting foreign investment.

SEBI's permission to merchant bankers comes along with some conditions, including disclosure norms, sources associated with the disinvestment process said.

In view of the importance being attached to the success of the ONGC issue for attainment of the revised disinvestment target of Rs. 14,500 crores for 2003-04, the Government had recommended to SEBI for favourable consideration, the sources said.

So far, SEBI had permitted fund managers to use participatory notes but barred lead managers and book runners from using the instrument by which foreign funds not registered in India could participate in a public offer.Meanwhile, the Disinvestment Secretary, Dhirendra Singh, and the Finance Secretary, D. C. Gupta, will join the ongoing road shows for the ONGC public offer and hold meetings with investors in London, New York and Boston beginning March 8 in a bid to hard sell the issue. The issue for 14 crore shares would hit the market on March 5 for which the Government would fix the price band tomorrow.

PTI

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