Out of the money provided by the Central or State Government for the payment of dividends in pursuance of guarantee given
In Above information why central or state government guarantee given for payment of dividend
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ABOUT PAYMENT OF DIVIDEND
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Government guarantees for dividend payments are typically issued to incentivize private investment in essential public infrastructure or sectors deemed critical to national development. By guaranteeing a minimum return, the government mitigates investment risk, thereby securing the necessary capital for long-term projects that might otherwise struggle to attract funding.
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