Govt to amend CPSE capital restructuring guidelines for dividend payment

The government is working to amend its 2016 guidelines with regard to dividend payment, bonus issues and share buyback by CPSEs, officials said.

The finance ministry had in May 2016, issued a comprehensive guidelines on 'Capital Restructuring of Central Public Sector Enterprises (CPSEs)' in 2016 for efficient management of government investment in CPSEs.

"With the CPSEs now more strong in terms of balance sheet and having improved on their market capitalisation, it is now time for a relook of the capital restructuring guidelines," an official told PTI.

The amended guidelines are expected to be issued by the finance ministry this month, another official said.

As per the capital restructuring guidelines issued, CPSEs that do not have plans to deploy their capital optimally for business purposes should have a professional look at the surplus funds available to them.

As per the guidelines issued by the Department of Investment and Public Asset Management (DIPAM) in May 2016, every CPS