NEW DELHI: The government may exempt state-owned trading firms, MMTC and STC, from dividend payment and for 2016-17 and other DIPAM guidelines, official sources said.
The commerce ministry has urged the finance ministry to provide these exemptions from guidelines relating to payment of dividend, buyback of shares, issue of bonus shares and splitting of shares 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 tax or 5 per cent of the networth, whichever is higher.
State Trading Corporation (STC) and Metals & Minerals Trading Corporation of India (MMTC) are under the administrative control of the commerce ministry.
The government owns about 90 per cent stake in MMTC and STC.
MMTC and STC were created in 1963 and 1956 respectively.
Currently, these firms are engaged in exports and imports of items such as agro commodities like pulses.