Q.What is meant by disinvestment?

Disinvestment is the most common route to privatisation, but it is a partial sale, not a full exit by government.

Define it and note that a Disinvestment Commission (1996) was set up to guide this process.

Disinvestment is the process by which the government sells a part of its equity/shareholding in a public-sector undertaking (PSU) to private investors or the general public (usually through the stock market), while typically retaining a majority stake and overall ownership control. It is the most widely used route to privatisation in India, and a Disinvestment Commission was set up in 1996 to identify suitable PSUs and recommend the extent of stake sale. It is distinct from a strategic sale, which transfers majority stake and management control rather than a partial shareholding.