Posts Tagged ‘Finance and Investment’

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.