DIPAM issues revised capital restructuring norms

Key Points

• 1The Finance Ministry issued revised guidelines for capital restructuring by CPSEs.
• 2CPSEs must pay a minimum of 30% of net profit or 4% of net worth as an annual dividend.
• 3Financial sector CPSEs may pay a minimum annual dividend of 30% of PAT.
• 4CPSEs with a market price consistently less than book value and a net worth of at least ₹3,000 crore may consider share buybacks.
• 5The guidelines apply from the current financial year 2024-25.