March 8, 2010 : TAKING forward the proposed disinvestment of state-owned Coal India (CIL), capital market regulator Sebi has allowed the coal major to offer shares to its employees, including that of its subsidiaries. “Coal India has got Sebi clearance to issue shares to all its employees, including that of its seven subsidiaries,” a coal ministry official told PTI. According to the official, the disinvestment department was in constant dialogue with the Securities and Exchange Board of India (Sebi) to give a special dispensation to the navratna coal major, which is planning an initial public offering later this year.

    “Normally, Sebi does not allow a company to issue shares to employees of its subsidiaries. But in CIL’s case, a special dispensation was granted as the company is nothing but a group of all the entities,” he added. The company has about four lakh employees in seven subsidiaries. “The mode of allotment of shares, whether it would be through employees stock options or some other plan, is yet to be decided,” he added. The government was planning to divest 10% equity in CIL in the proposed IPO, in which the company plans to reserve about 1% shares for its employees.