IDBI Bank Bidding Clearance : The central government has made it mandatory for institutions bidding for stake purchase in IDBI Bank to obtain security clearance from the Ministry of Home Affairs in the first phase. Till now, bidding companies involved in the process of privatization of Centrally Controlled Public Sector Undertakings (CPSEs) were obliged to obtain security clearance in the second phase.
Security clearance required from Ministry of Home Affairs
Following this requirement, the bidding companies found eligible at the stage of filing the Expression of Interest (EoI) will have to obtain security clearance from the Union Home Ministry at the time of placing the financial bids. This information has been given by the Department of Investment and Public Asset Management (DIPAM), which regulates the disinvestment of public assets.
What is the reason behind taking security clearance
DIPAM says that only the bidders who have received a ‘fair and proper’ assessment from the Reserve Bank of India and security clearance from the Ministry of Home Affairs will be notified as eligible parties of interest (QIPs) for this stake purchase. . Only after that the process will proceed.
Bidding will be held on December 16
With the help of this bidding process, the central government is preparing to sell its and LIC’s total 60.72 percent stake in IDBI Bank. DIPAM had last week invited EoIs from potential bidders for the same. Interested companies can bid till December 16.
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