Salient Features

1.	Empowerment of Employees of SOEs / other GoP share holding through transfer of twelve percent (12%) of the GoP shareholding and a seat on the Board.
2.	All permanent employees and contractual Employees (with minimum service of five years) are eligible for the BESOS and can only exit on retirement, or otherwise ceasing to be Employee of the SOE.
3.	Twelve percent (12%) of the GoP shareholding to be transferred for free.
4.	SOEs to create a Trust for BESOS with token cash. The Board of Trustees to consist of Government Nominees and Employees representatives.
5.	The Shares of respective SOE to be transferred to the Trust.
6.	Trust to assign units to Employees in proportion to their entitlement on the basis of length of service through Unit Certificate.
7.	Unit Certificates are not saleable, however, these can be pledged or hypothecated.
8.	Employees to surrender the Unit Certificates to Trust on retirement, or otherwise ceasing to be an Employee.
9.	Trust to make payment for surrendered Unit.
10.	Surrendered Units to be returned by Trust to the Federal Government.
11.	The GoP will guarantee the buyback of the surrendered units on the following basis:- (a). the market value of the listed companies, (b). break-up value at historical cost based on the last audited financial statements excluding re-valuation reserves for the un-listed and private limited companies, (c). on net-worth based on the last audited financial statements excluding re-valuation reserves for SOEs established under Special Acts and Ordinance till such time they are corporatized.
12.	Employees representative on the Board to be nominated by GoP through Line Ministry / Holding Corporation on the recommendation of Trust. Such representative to be a Chartered Accountant or, a Corporate Lawyer or, an eminent professional having minimum professional experience of 15 years or, a Senior Government Official not below the status of a Joint Secretary.
13.	Trusts are entitled to receive dividends, if any, from the date of applicability of the BESOS.
14.	Funding arrangements:- 50% of the dividends to be transferred to central revolving fund for annual payout and 50% to be distributed amongst the employees. This will result into an annual payout of Rs.1.670 billion which will be funded by GoP.
15.	A central revolving fund out of the future dividends to be established in Privatisation Commission for payments against surrendered Unit Certificates.
16.	The BESOS to be implemented by the Privatization Commission in coordination with the line Ministry / holding corporation / respective SOEs.
17.	Corporatization of the SOEs established under Special Act / Ordinance by the Privatization Commission in-coordination with the Line Ministries.
List of State Owned Entities (SoEs) Progress so far