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Monday, January 18, 2016

NBCC shares plunge as govt revises norms for CPSEs

Shares of National Buildings Construction Corporation fell nearly 5 per cent on Bombay Stock Exchange (BSE) after the company announced that the Government of India (GOI) has issued revised guidelines for CPSEs. "The government of India (GOI) has issued revised guidelines for CPSEs to pay annual dividend of 30 per cent of PAT or 30 per cent of GOI's equity, whichever is higher in lieu of previous guidelines in 2004 communicating a dividend policy of 20 per cent of PAT or 20 per cent of equity, whichever is higher", the company said in a filing to BSE on Monday. Reacting to the news, shares of the company dropped as much as 4.91 per cent in intra-day trade to Rs 899.95 a piece on BSE. In a similar trend, shares of the company dipped 3.81 per cent to Rs 907.00 a piece on National Stock Exchange. Meanwhile, the broader benchmark BSE Sensex was trading at 24,201.80, down 253.24 points, or 1.04 per cent at 15.10 hours.