For the present business firms, the ownership patterns are distinctive by large Shareholder and may influence the dividend payout in a different way  . In corporate finance, the agency problem i.e. a conflict between company management and companies shareholder has constantly been considered  as potential weakness. The  manager has the  tendency to engage in unnecessary earnings and payout if possible for the security of their reward and human capital if possible. The main purpose of this paper is to analyze the co-relational   association between promoters shareholdings and dividend payout of Sensex companies over a period of 2001-2015 by using  a statistical method of correlation analysis.

KEYWORDS: Dividend policy, Promoters Shareholdings, Foreign Institutional Shareholding, Institutional Shareholding, Government Shareholding.