Issuing the revised guidelines on capital restructuring of CPSEs superseding the earlier guideline issued in 2016, the Department of Investment and Public Asset Management (DIPAM) said a need was felt to holistically review the norms to ensure the policy is aligned to reflect the evolution in the capital market conditions and financial/ capital restructuring of CPSEs.The 2016 guidelines don't mention CPSE NBFCs and minimum annual dividend payout at 30 per cent of PAT or 5 per cent of net worth, whichever is higher.The latest guidelines say CPSEs, whose market price of the share is less than the book value consistently for the last six months, and having net-worth of at least ₹3,000 crore and cash & bank balance of over ₹1,500 crore may consider the option to buy-back their shares. "It is clarified that cash and bank balances of some CPSEs may be high due to receipt of advance and milestone payments. Therefore, cash and bank balances for the purpose of buyback, shall mean own cash i.e. cash holdings minus the advances received from clients for project work. For assessing the net worth of a CPSE, general reserves and surplus plus paid-up share capital of the CPSE are required to be used," the latest guidelines said.

FinMin sets dividend norms for NBFC CPSEs

55,807,446,111,2020,3101

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