Pushing for Fair Dividends: DIPAM Secretary Advocates for Private Sector Accountability

Arunish Chawla, DIPAM Secretary, emphasizes the importance of fair dividends from private companies and encourages mutual funds to invest in public sector enterprises. Despite public companies paying a mandated minimum dividend, private firms lag. Chawla highlights CPSEs' strong performance and record dividend payouts to benefit the common man.

In a recent urging, Arunish Chawla, the Secretary of the Department of Investment and Public Asset Management, called for private sector companies to deliver 'fair' dividends to shareholders. Chawla's comments underscored the need for mutual funds to enhance their investment in public sector enterprises.

The government's policy mandates a minimum annual dividend of 30% for public companies, with no equivalent for private firms, whose payouts average 20%. Chawla plans to engage with top mutual fund houses in Mumbai to boost central public sector enterprises (CPSE) shares in their portfolios.

Highlighting the stellar performance of CPSEs, which achieved a dividend payout peak of Rs 1.50 lakh crore in 2024-25, Chawla stressed the dividends' role in benefiting all investors, including senior citizens and minority shareholders. He advocated for fair dividends from private companies to improve market conditions for common investors.

(With inputs from agencies.)