New Delhi: Private sector companies should pay ‘fair’ dividend to their shareholders, DIPAM Secretary Arunish Chawla said on Wednesday, as he also nudged mutual funds to increase the share of public sector enterprises in their portfolio.
As per the government’s dividend policy, public sector companies are mandated to pay a minimum annual dividend of 30 per cent of their net profit in a fiscal. However, there is no such set rule for private sector firms and their annual dividend payout is around 20 per cent on average. Chawla, would be travelling to Mumbai soon to meet top mutual fund houses, highlight the “value creation strategy” adopted by CPSEs and pitch for increasing the share of CPSE stocks in portfolio.
The dividend payout by CPSEs was at an all-time high of Rs 1.50 lakh crore in 2024-25 and the government wants that the common man also reaps the benefit of better corporate performance in the form of dividend, the secretary said.