Finance ministry asks EPFO to invest up to 5 per cent in stocks
17 Aug 2009
The finance ministry has asked the Central Board of Trustees of the Employees Provident Fund Organisation (EPFO) to ensue that a minimum three to five per cent of the funds under its management are parked in equities.
This could see additional Rs13,000 crore funds flowing into the stock markets.
The EPFO is expected to consider the note on investment prepared by the Finance and Investment Committee (FIC) of the finance ministry, at its meeting on 18 August.
The recommendations of the committee are usually accepted by the CBT, which is headed by the labour minister.
The EPFO had earlier turned down a finance ministry proposal to park up to 15 per cent of its funds in stocks on the ground that it cannot invest retirement funds in highly volatile stock markets.
Finance ministry joint secretary K P Krishnan made the suggestion at a recent meeting of the Central Board of Trustees, the apex decision-making body of the EPFO.