EPFO defers call on parking funds in SEs

EPFO defers call on parking funds in SEs

“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 M Mallikarjun Kharge told reporters 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 equity-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.

“A large number of members are not in favour of the idea of investing 15 per cent of funds in stock markets as proposed by the Finance Ministry in its new investment pattern,” a CBT member and Secretary Hind Mazdoor Sabha A D Nagpal said.

“Our priority is security of depositors’ money. We want good returns on the investments also, but not at the cost of security of retirement money of the subscribers”, he added.
Press Trust of India

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