Govt asks CPSEs for quarterly dividend payouts, higher share of profits

DIPAM has prepared a 'consistent' dividend policy for state-owned firms to follow

Staring at a revenue crunch, the government has asked rich state-owned firms (PSUs) to start paying dividends on a quarterly basis, even as it has demanded higher share from profits of all its companies. Aiming for a ‘predictable and staggered’ dividend regime, the government told the state-owned firms to not go by the rulebook in paying the bare minimum dividend but to strive for giving out more dividends.

“The central public sector enterprises, especially those that pay relatively higher dividends (100 per cent dividend or Rs 10 per share as the case may be), may consider paying interim dividend every quarter