SSC MTS EXAM

SSC

INDIAN ECONOMY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Disinvestment means selling of a public investment to a
A
private enterprise
B
public enterprise
C
capital market
D
departmental enterprise
Explanation: 

Detailed explanation-1: -It refers to the process of transferring or sale of the public ownership to private ownership in part or full. It is a process of reducing government’s role in the economy. Disinvestment means disposal of equity of public sector units in the market. Disinvestment is one of the operational measure of privatization.

Detailed explanation-2: -The correct answer is Privatization. Key Points. 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.

Detailed explanation-3: -The correct answer is Privatization. Key Points. Disinvestment in India is a policy of the Government of India, wherein the Government liquidates its assets in the Public sector Enterprises partially or fully.

Detailed explanation-4: -The disinvestment process in Public Sector Enterprises means the dilution of the stakes of the Government in a public enterprise. Privatisation of the public sector enterprises by selling off part of the equity of Public Sector Enterprises to the public is known as disinvestment.

There is 1 question to complete.