New Delhi [India], November 19 (ANI): The government PSU stocks or CPSEs will now give a minimum annual dividend of 30 per cent of their profit after tax (PAT) or 4 per cent of their net worth to ensure consistent returns to shareholders. The government on Monday has issued revised guidelines to streamline the capital restructuring of Central Public Sector Enterprises (CPSEs), ensuring consistent returns for shareholders and improved financial flexibility. Also Read | Tara Sutaria Birthday: Check Out Her Dreamiest Fashion Looks on Instagram (View Pics).
Under the new rules,"Every CPSE would pay minimum annual dividend of 30 per cent of PAT or 4 per cent of the net worth, whichever is higher, subject to the limit, if any, under any extant legal provision. Financial sector CPSEs like NBFCs may pay minimum annual dividend of 30 per cent of PAT subject to the limit, if any, under any extant legal provisions." The updated framework, released through an official memorandum by the Department of Investment and Public Asset Management (DIPAM), introduces key measures for dividends, share buybacks, and bonus share issuance.
Also Read | Matt Gaetz Attended Orgies? Donald Trump's Attorney General Pick Accused of Attending 10 Sex Parties, Paying Women for Sexual Activities. A significant addition is the eligibility criteria for share buybacks. CPSEs can repurchase shares if their market price consistently remains below book value for six months and they have a net worth of at least Rs 3,0.
