Mutual Funds Urged to Include PSU Stocks by DIPAM Secretary

India’s divestment secretary made two key requests during a recent statement. First, the official urged private companies to pay fair dividends to their minority shareholders, suggesting that private firms should follow the example set by government-owned companies. Second, the secretary asked mutual funds to include more public sector undertaking (PSU) stocks in their investment portfolios.

The statement highlighted the strong dividend performance of state-run companies, which paid out a record 1.5 trillion rupees ($17.33 billion) in dividends during the 2025 financial year. From these payments, the government received 740.17 billion rupees as its share from PSU stocks.

These record payments demonstrate the significant revenue that government-owned enterprises generate for the national treasury. By encouraging mutual funds to invest in PSUs and asking private companies to match their dividend practices, the government appears to be promoting both investment in state enterprises and fair treatment of smaller investors across all sectors. The current exchange rate stands at 86.58 Indian rupees to one US dollar.