Split CPSE shares if trade above 50 times face value,

IN a maj or change in capital restructuring guidelines for non-bank public sector entities, the government has mandated listed Central Public Sector Enterprises (CPSEs) to consider splitting their shares if they trade above 150 times the face value for six months.

- DIPAK MONDAL

As per earlier rules, listed CPSEs had to consider a stock split if the stocks traded above 50 times the face value. The new rules mandate PSUs to pay dividend at least 80 % of net profit or 4% of the net worth, whichever is higher. As per the guidelines, a listed PSU, where market price exceeds 150 times of its face value consistently for last six months may consider split-off its shares. There should be a cooling off period of at least three years between two successive share s