Definition

A reduction in capital investment. 

1. The action of an organization or government selling or 
liquidating an asset or subsidiary. Also known 
as "divestiture". 

2. A reduction in capital expenditure, or the decision of a 
company not to replenish depleted capital goods. 

1. A company or government organization will divest an 
asset or subsidiary as a strategic move for the company, 
planning to put the proceeds from the divestiture to better 
use that garners a higher return on investment. 

2. A company will likely not replace capital goods or 
continue to invest in certain assets unless it feels it is 
receiving a return that justifies the investment. If there 
is a better place to invest, they may deplete certain 
capital goods and invest in other more profitable assets. 

Alternatively a company may have to divest unwillingly if 
it needs cash to sustain operations.

Dis-investment means uploading the government shares in the 
secondary market (ie: shares of Public ltd company like 
ONGC, BHEL, GAIL etc).

Dis-investment is generally done to raise the capital for 
such companies.

In simple terms it is exactly opposite to investment

by
Mohammedghousemohiuddin

Selling of government shares/units to the private owners by 
government except some special industries which are 
considered as 'Navratnas'and under controlled, managed by 
governmnt only.For example SEB(STATE ELECTRICITY BOARD)of 
some states has been handed over to CESCO,NESCO etc.