Mumbai: The government is working towards limiting its role in the everyday functioning of public sector companies by getting more of them listed on the stock exchanges and thereby help them develop more professionalism in their management, prime minister Manmohan Singh said

"It may be useful for more public enterprises to be listed on the stock exchange as this would enhance professionalism of the board of directors and empower independent directors," Singh said at the conference of chief executives of public enterprises.

He said the induction of independent directors on the board of PSEs would ensure greater efficiency and effectiveness in decision-making.

At present 44 of the 239 central public enterprises are listed on Indian stock exchanges while MTNL is listed on New York Stock Exchange and GAIL and SAIL are listed on London Stock Exchange, he said.

He said the government was committed to a stronger and vibrant public sector with full managerial and financial autonomy.

"Excessive regulation restricts entrepreneurial drive and makes management risk averse," Singh said adding public sector too can foster entrepreneurship but that requires an environment that encourages risk taking and offers adequate freedom to the senior management to take quick and difficult decisions.

The prime minister also asked public sector companies to look at joint ventures and mergers as part of the strategy to improve overall performance.

"Public enterprises also need strategies vision. They must learn from private sector and seize opportunities for mergers, acquisitions, amalgamations, takeover and creating joint ventures," Singh said.

He said mergers and acquisitions should be an integral part of their business strategy to create shareholder value, become cost effective, reduce cost of finance and increase their market share.

"I believe that many joint ventures and alliances, both between public enterprises and between public and private enterprises are being worked out," he added.