With reference to the India economy, consider the following statements:1.Initial Public Offering (IPO) is offer of shares by a listed Public Sector Enterprise (PSE) or the Government out of its shareholding or a combination of both to the public for subscription.2.Further Public Offering (FPO) is offer of shares by an unlisted Public Sector Enterprise (PSE) or the Government out of its shareholding or a combination of both to the public for subscription for the first time.3.Strategic Sale refers to sale of substantial portion of the Government shareholding of a Public Sector Enterprise (PSE).Which of the statements given above is/are correct?

Q. With reference to the India economy, consider the following statements:
1.Initial Public Offering (IPO) is offer of shares by a listed Public Sector Enterprise (PSE) or the Government out of its shareholding or a combination of both to the public for subscription.
2.Further Public Offering (FPO) is offer of shares by an unlisted Public Sector Enterprise (PSE) or the Government out of its shareholding or a combination of both to the public for subscription for the first time.
3.Strategic Sale refers to sale of substantial portion of the Government shareholding of a Public Sector Enterprise (PSE).
Which of the statements given above is/are correct?

[A] 1 and 3 only

[B] 2 only

[C] 3 only

[D] 1, 2 and 3

Answer: C

Notes:

Explanation –

Statement 1 and 2 are incorrect. IPO is offer of shares by an unlisted PSE or the Government out of its shareholding or a combination of both to the public for subscription for the first time. FPO is offer of shares by a listed PSE or the Government out of its shareholding or a combination of both to the public for subscription.

Statement 3 is correct. Strategic Sale refers to sale of substantial portion of the Government shareholding of a PSE, up to 50%, or such higher percentage as the competent authority may determine, along with transfer of management control.

Source: ForumIAS

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