The Hindu Business Line : EPFO defers decision on investment funds in capital markets

NEW DELHI: The EPFO on Saturday deferred the decision on investing 15 per cent of its corpus of about Rs 1.82 lakh crore into equity, a move which could have seen Rs 25,000 crore flowing into the capital markets.

“We would separately look into it (investing funds in stock markets). Naturally safety and security is the most important and the returns also important for the employees. Looking at all those things we (will) decide,” Union Labour Minister, Mr M Mallika rjun Kharge said after the meeting of the Central Board of Trustees (CBT).

The issue, he said, would be taken up in the next meeting of the CBT, the apex policy making body of the Employees' Provident Fund Organisation (EPFO).

The finance ministry in August last year, had suggested an investment pattern to EPFO under which the organisation could park up to 15 per cent of its funds in the companies listed on the Bombay Stock Exchange and the National Stock Exchange and also equ ity-linked schemes of SEBI-regulated mutual funds.

The proposal to park funds in the stock market, however, was rejected by the EPFO's advisory body Finance and Investment Committee at its meeting on March 26. - PTI

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