Posts Tagged ‘CBT’

EPFO Panel to Meet in October for Parking Money in Stock Market

The Finance and Investment Committee (FIC), key advisory body of the Employees Provident Fund Organization, would meet next month in order to take a view on parking 3 to 5 per cent of its large corpus of Rs 2.57 lakh crore in the capital market.

As per the EPFO sources, this was a long pending issue and was likely to be discussed at the committee meeting scheduled next month. If this proposal got the nod then it would result flowing of Rs 13,000 crore into the stock markets. FIC would make necessary recommendations to Central Board of Trustees, EPFO”s apex body, for the final decision, after the evaluation of the proposal

At a recent meeting of FIC, it was felt in order to enhance or maintain overall returns to the subscribers as fixed-income products, an alternative avenues are a must.

CBT this July had dumped the proposal of parking up to 15 per cent of its funds in equities. However, K P Krishnan, joint secretary in the finance ministry, then told the trustees that EPFO could start parking 3-5 per cent of corpus in stock markets, if CBT members had reservations about investing in equities.

Invest Retirement Funds in Stocks for Better Returns :)

retirement fund scheme

The government has asked the Employees Provident Fund Organisation to begin parking 3-5% of its subscribers’ retirement funds in stocks for better returns — a move that would also increase flow of funds to capital markets by up to Rs 13,000 crore.


The suggestion was made by finance ministry at a recent meeting of the Central Board of Trustees (CBT), the apex decision making body of the EPFO.


Trustees were told that EPFO could begin by parking 3-5% of its corpus in stocks, if the CBT members had reservations about investing in equities.


They were further told that long term investments in stock indices would generate healthy returns to the EPFO with negligible risk.


The finance ministry’s note on investment would be considered by the finance and investment committee, an advisory body of the EPFO, at its next meeting.


The recommendations of the committee are usually accepted by the CBT, which is headed by the labour minister and has the authority to take policy decisions.