New Delhi, Jun 5 (PTI) The government is likely to make it mandatory for the investment bankers to reveal name of their existing clients while bidding for managing share sale offer of a state-run firm.
The Finance Ministry is expected to come out with a notification this week making the disclosure mandatory.
The new rules are proposed to be made applicable starting with share sale offer of National Buildings Construction Corporation Ltd (NBCC), sources in the finance ministry told PTI.
"Government does not want to repeat any SAIL-like situation. Hence it wants investment bankers to divulge their clientele so that there is no clash of interest," the source said.
The Government had to postpone disinvestment of SAIL last year, as the selected merchant bankers also engaged themselves with share-sale of Tata Steel, thereby causing a "conflict of interest" between the two parties.