To nudge MFs to include PSU stocks in portfolios, says Divest secy
This story was originally published at 15:18 IST on 9 April 2025
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--Divest secy: To nudge pvt cos to give fair dividends to minority shrholders
--Divest secy: Govt received INR 740.17 bln from PSUs as dividend in FY25
--Divest secy: Urge mutual funds to include PSU stocks in their porfolios
--Divest secy: PSUs gave record dividend of INR 1.5 tln in FY25
NEW DELHI - Noting the strong dividend payout by public sector undertakings, the government would nudge mutual fund managers to include stocks of such entities in their portfolios, Divestment Secretary Arunish Chawla said Wednesday. This would encourage retail investors and minority shareholders deploy their savings in these instruments, Chawla added.
The secretary is also likely to visit Mumbai soon to discuss the matter with mutual fund providers. The government-owned companies, even with a market capitalisation of only 10% of the total market cap, paid INR 1.50 trillion aggregate dividend in 2024-25 (Apr-Mar), which was 25% of the overall dividend paid by all listed companies, Chawla pointed out.
Out of the INR 1.50 trillion aggregate dividend, the government received a record-high INR 740.17 billion in FY25. The record high dividend was on account of the government's value creation strategy, Chawla said.
In a bid to inculcate the value-creation strategy beyond public sector companies, the government would also ask private companies to declare fair dividends to their minority stakeholders, Chawla said. "This will make the share market a better place for all." End
Reported by Krity Ambey, Priyasmita Dutta, and Sagar Sen
Edited by Vandana Hingorani
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