Special dividend by cash rich PSUs should be considered: Manishi Raychaudhuri

Reports suggest that the government may ask cash rich PSUs to use reserves for investment purposes. However, Manishi Raychaudhuri, Strategist and Head of Research, BNP Paribas Securities feels that may not be received well by the markets since the return on those investments in the current policy environment may remain uncertain. Instead, Manishi Raychaudhuri feels the cash reserves should be used for a special dividend. This would mean equal benefits to majority and minority shareholders and also help improve the government's fiscal position.