Restructuring:

Following changes have been incorporated recently in NIF:

♤ The disinvestment proceeds with effect from the fiscal year 2013-14 will be credited to the public account under the head National Investment Fund (NIF), and they would remain there until withdrawn/invested for the approved purposes.

♤ The fund will be used to subscribe to shares issued by the Central Public Sector Enterprise (CPSEs), including public sector banks and public sector insurance companies, and for preferential allotment of shares of the CPSE to promoters so that government holding does not go down below 51 per cent, in all the cases where the CPSE is going to raise fresh equity

♤ The fund managers presently managing the NIF will stand discharged of their responsibility and NIF will be operated through an empowered group of ministers (eGoM) headed by the finance minister and it will work on the advice of an inter- ministerial group (IMG) working under the chairmanship of disinvestment secretary.