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Govt may exempt MMTC, STC from dividend payment

Press Trust of India  |  New Delhi 

The may exempt state- owned trading firms, and STC, from dividend payment and for 2016-17 and other DIPAM guidelines, official sources said.

The commerce ministry has urged the ministry to provide these exemptions from guidelines relating to payment of dividend, buyback of shares, issue of bonus and splitting of to these companies, sources, who did not wish to be named, said.

As per the DIPAM (Department of Investment and Public Asset Management) guidelines, the profit making companies are required to pay an annual dividend of 30 per cent of profit after or 5 per cent of the networth, whichever is higher.

State Trading Corporation (STC) and Metals & Minerals Trading Corporation of (MMTC) are under the administrative control of the commerce ministry.

The owns about 90 per cent stake in and STC.

and STC were created in 1963 and 1956 respectively.

Currently, these firms are engaged in and of items such as agro commodities like pulses.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 11 2017. 19:07 IST