Q. With reference to “Disinvestment” consider the following statements:
1.It is the market activity through which the government conducts sale or liquidation of government-owned assets. 
2.The procedure for disinvestment can only be done for Central Public Sector Enterprises (CPSEs) and not for state public sector enterprises (SPSEs).
3.Institutional Placement Program (IPP) is one of the methods of disinvestments.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: C
Notes:

Explanation –

Statement 1 and 3 are correct. Disinvestment or Divestment is the market activity through which the government conducts sale or liquidation of government-owned assets. IPP is one of the methods of disinvestments.

Statement 2 is incorrect. Disinvestment can be done for both CPSEs and SPSEs.

Source: ForumIAS

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