What is the meaning of disinvestment in India?

Divestment or disinvestment means selling a stake in a company, subsidiary or other investments. The Indian government started divesting its stake in public-sector companies in the wake of a change of stance in economic policy in the early 1990s — commonly known as ‘Liberalisation, Privatisation, Globalisation’.

What is government divestment?

At the institutional level, divestment is a policy and set of economic sanctions used by corporations, groups of shareholders, individuals, and governments to put pressure on a company or a country, usually to protest either the company’s or the country’s policies and practices. …

What is a divestment example?

What is a Divestiture? Examples of divestitures include selling intellectual property rights, corporate acquisitions and mergers, and court-ordered divestments.

What is meant by divestment?

Divestment is the process of selling subsidiary assets, investments, or divisions of a company in order to maximize the value of the parent company. Companies can also look to a divestment strategy to satisfy other strategic business, financial, social, or political goals.

What is an example of liquidation?

When a business closes and sells all of its merchandise because it is bankrupt, this is an example of liquidation. When you sell your investment to free up the cash, this is an example of liquidation of the investment. The selling of the assets of a business as part of the process of dissolving the business.

How do you disinvest?

How To Divest

1. Step 1: Find out how much you have invested in fossil fuels.
2. Step 2: Discuss your divestment options with your custodian.
3. Step 3: Look at fee structures, find out what’s best for you.
4. Step 4: Tell us your story and how we can help.

What is a divestment clause?

A Standard Clause that may be used in a purchase or merger agreement when a buyer wishes to limit its obligation to make divestitures in a transaction that may be subject to an enforcement action by an antitrust regulator.

What does divestment mean in business?

Divestment involves a company selling off a portion of its assets, often to improve company value and obtain higher efficiency. Items that are divested may include a subsidiary, business department, real estate holding, equipment, and other property, or financial assets.

What is the difference between winding up and liquidation?

While winding up, a company ceases to do business as usual. Its sole purpose is to sell off stock, pay off creditors, and distribute any remaining assets to partners or shareholders. The term is used primarily in Great Britain, where it is synonymous with liquidation, which is the process of converting assets to cash.