The inter-ministerial group on divestment has approved the appointment of a US accounting firm -- Little & Co -- for divestment of the government's 25 per cent shareholding in Bharat Petroleum Corporation through a public float in the American market.

The group, which met on Wednesday evening to review the progress of government stake sale in BPCL and Hindustan Petroleum Corporation, also decided to open the HPCL data room to bidders in the third week of August, official sources said on Thursday.

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Little & Co will be given the mandate to restate BPCL's accounts in compliance with the US GAAP (Generally Accepted Accounting Principles) in the next three months.

The group is also believed to have deliberated on comments received from some bidders on a government proposal to retain veto power with a nominal stake in HPCL where 34.01 per cent equity is being sold to a strategic partner.

In the draft shareholders' agreement circulated to prospective bidders, the government has sought veto powers on 28 matters or businesses that could come up before the board for approval.

The government has also sought two board positions for itself so long as it holds 5 per cent stake in the company and one board position as long as it has one share in the company.