with the use of base of higher pk a value than hydrazine u03b4pk a for rearrangement of epoxy hydrazone generated in situ according to the present invention a process for producing gugulsterone was improved to a large extent and with good efficiency as compared with the process disclosed by bernn w r et al in their publication the synthesis and stereochemistry of isomeric 16 hydroxy 17 20 pregnenes j org chem 29 1142 48 1963 the compound obtained according to the process of the present invention is very useful as hypolipidemic and antoxidant agent and antioxidant agent it can also be admixed with guglip and other hypolipidemic agents the following example is given by way of explanation and should not constructed the scope of the invention 16 dehydropregnenolone acetate 35 g is suspended in methanol 500 ml the solution is treated after cooling to 500 u00b0 c with 4n naoh 8 9 gm in 50 ml h 2 o followed by immediately with hydrogen peroxide urea adduct uhp 18 g the mixture is then stored in the refrigerator at 5 u00b0 c for 72 hr the reaction mixture is shaken intermittently the reaction mixture is poured into 500 ml of ice water the product is isolated by centrifugation after wash.