India has revised guidelines for dividend payments, share buybacks and stock splits at state-run companies to improve capital management and bolster performance of their equities. The government has asked state-run non-banking financial companies (NBFC) to pay a minimum annual dividend of 30% of their profit subject to any present legal provisions, according to guidelines by the federal finance ministry released on Monday. Dividend payout limits for NBFCs are prescribed by the Reserve Bank of India based on their capital requirement and asset quality. Power Finance Corp and REC Ltd are the biggest government-owned listed NBFCs. Except for government-owned banks and insurance companies, all state-run firms government have to pay a dividend of 30% of profits or 4% of net worth, whichever is higher. Presently, public sector companies have to pay an annual dividend of 30% of profit or 5% of net worth, whichever is higher. The guidelines will be applicable from the current financial year ending March 31, 2025. Firms whose share price is less than its book value for the past six months, have a net worth of 30 billion rupees ($355.51 million) and a cash balance of 15 billion rupees have been asked to consider share buybacks. Past limits for share buybacks were a net worth of at least 20 billion rupees and cash and bank balance of 10 billion rupees. The guidelines released on Monday require state-run firms to issue bonus shares if their reserves are 20 times share capital from five times earlier. State-run firms have also been asked to opt for stock splits in case the share price exceeds 150 times their face value for the last six months from 50 times earlier. Stock splits help in improving trading volumes, making it attractive for retail investors.