November 05, 2024 14:54 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Pakistan's Lahore has become world's most polluted city with an AQI of 1900 on Sunday | Indian Army 'successfully completes' patrolling to a key point in Ladakh's Depsang region | US presidential election: Donald Trump ahead of Kamala Harris in swing states, poll survey predicts | 'I strongly condemn Hindu temple attack, intimidation of our diplomats': PM Modi amid Canada row | 'I strongly condemn Hindu temple attack, intimidation of our diplomats': PM Modi amid Canada row
EPFO likely to increase equity investment to 20 pc
EPFO
Image Credit: UNI

EPFO likely to increase equity investment to 20 pc

| @indiablooms | 18 Jul 2022, 10:07 pm

New Delhi: Employees Provident Fund Organisation (EPFO) may approve a proposal to increase its investments in equities to up to 20 percent from the current limit of 15 percent during the EPFO trustees’ meeting scheduled to be held on July 29 and 30, media reported.

According to the proposal, the equity exposure will be raised and investment guidelines will be revised to diversify the portfolio between equity and debt proportionately.

At present, EPFO can invest 5 to 15 percent of investible deposits in equity or equity-related schemes.

The proposal is expected to be taken up by the EPFO Central Board of Trustees for consideration and approval. 

In a written reply to Lok Sabha on Monday, Minister of State for Labour and Employment Rameshwar Teli said, “FIAC, a sub-committee of CBT, EPF, has recommended for the proposal to increase investment in equity and related investments in category IV of the Pattern of Investment from 5-15 percent to 5-20 percent for consideration of CBT, EPF.”

In the written reply, Teli also said the notional return on EPFO equity-related investments rose 16.27 percent in 2021-22 from 14.67 percent in 2020-21. The reply also showed that the notional rate of return on equity-related investment of the EPFO was negative at (-) 8.29 percent in 2019-20 due to the impact of COVID-19.

EPFO started investing in equity in 2015 with 5 percent of its investible fund. It was raised to 15 percent for the current financial year.

Trade unions have been opposing any investment in stock markets by EPFO as these are not backed by a government guarantee.

 

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.