India Plans to Ease Pricing Rules for Stake Sale in State Firms

India’s market regulator has proposed to ease the pricing rules for divestment of state-owned companies, helping Prime Minister Narendra Modi-led government to move faster on its asset-sale program.

The Securities and Exchange Board of India has recommended scrapping the 60-day norm to determine the open-offer price for state-owned firms, it said in a consultation paper issued Friday. Sebi sought comments from the public by April 15.

The move will also help eliminate uncertainties and speculation surrounding the pricing of such offers. The market price of state-run companies are “highly susceptible” to manipulation, Sebi said. That’s because it takes a ...