Which of the following is true about " Disinvestment" ?

• selling off part of equity of PSEs to the private sector
• it improves financial discipline in the company
• facilitate modernization by encouraging private sector

1, 2 and 3

Privatisation of the public sector enterprises by selling off part of the equity of PSEs to the public is known as disinvestment. The purpose of the sale, according to the government, was mainly to improve financial discipline and facilitate modernisation. It was also envisaged that private capital and managerial capabilities could be effectively utilised to improve the performance of the PSUs.