The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has given approval for the listing of Export Credit Guarantee Corporation Ltd (ECGC) on the stock exchange.
The approval has been given under the SEBI's (Issue of Capital and Disclosure Requirements) Regulations, 2018.
In a statement released by the cabinet committee, it said that the listing of ECGC, a wholly-owned CPSE of the government, will promote 'people's ownership' by encouraging public participation in the equity holding of the company.
It will also promote corporate governance through transparency and greater accountability, the committee said.
The committee chaired by PM Modi clarified that ECGC was set up with the objective of improving the competitiveness of the exports by providing Credit Risk Insurance and related services for exports.
The listing may enable ECGC to mobilise fresh capital from the market either through the same IPO or subsequently through a follow-on public offer (FPO) and thereby help in increasing the maximum liability cover, the statement said.
The disinvestment proceeds will be used for the financing of social sector schemes, said the committee.
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