New Delhi: The central government has planned to reduce its stake in five public sector banks by 20 percent. According to the news, the government is doing this to fulfill the rules of the Securities and Exchange Board of India (SEBI). SEBI rules say that the common people should have at least 25 percent of the company in every listed company. Currently, the government's share in these banks is more than 75 percent, which is ready to reduce. There are two ways to reduce the responsibility. The first way is that the government itself sold its stake in the stock market or to big investors. The second way is to sell their shares to big investors themselves. Both methods will reduce the government's share in banks and will be fulfilled by SEBI rules. Right now the share of the government in these banks is very high, which has become necessary to reduce it according to the rules.

These five banks will decrease share

According to the report, banks in which share will be reduced include Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Central Bank of India and Punjab and Sindh Bank. The government is doing this work in association with the Department of Investment and Public Assets Management (Deepam), the Department of Financial Services and Banks. For this, methods like offer-for-cell (OFS) and qualified institutional placement (QIP) can be used. That is, the government can sell its share in the open market or to big investors. According to an official, the government aims to bring its share below 75 percent in these banks. For this, the Department of Investment and Public Property Management (Deepam) can allow share sale.