Political Science · Political Processes in India
Token privatization or deficit privatization of public sector units occurs when the government sells
A5% of shares ✓ Correct
B10% of shares
C49% of shares
D51% of shares
Correct answer: (A) 5% of shares — Token privatization means selling about 5% of shares, so that is the answer.
Explanation
★Token privatization means selling about 5% of shares, so that is the answer.
★Here the government keeps full ownership and control.
★Only a small stake is sold, often to cover the deficit.
★It does not transfer management to private hands.
★Selling 51% would amount to a transfer of control.
★So a 5% sale is merely token or deficit privatization.
★Thus the answer is 5% of shares.
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