The effects of liberalisation in India have led to the companies to operate in a new economic environment altogether. Foreign players started moving in the domestic market. The companies started to face stiff competition and the entry of foreign companies has widened the opportunity of making more choice to the investors. So the companies found them in a complex situation. On one side, it has to be defensive in the dividend payment area to retain financial recourses to face any downturn in the market conditions. On the other hand, the companies have to follow aggressive dividend policy to attract investors who have a wide choice of making investment in the post liberalisation period. The financial managers in the post liberalisation period are to make tougher decisions. It becomes a subject of study how finance managers of Indian companies adapt themselves to the changed situation. It is to be studied as to what they think as an appropriate dividend policy and the factors on which they pay relative importance for determination of dividend payment.