Proposal to invest 15% of EPFO funds in stocks rejected
Mar 26, 2009
Personal Finance
The Finance Ministry’s ambitious plan of investing Employees’ Provident Fund Organisation (EPFO) money in the stock market has come a cropper.
In August 2008, the ministry had put up a proposal seeking to invest upto 15% of the EPFO corpus (Rs.1,82,000 crore) in shares of listed companies along with ELSS funds. With the markets tanking the way they have, I guess this wasn’t a difficult decision to make. Even the trade unions were totally opposed to this move. So for the time being, these funds will continue to be deployed in central government securities, state government loans and government guaranteed securities.
The finance ministry had initiated this proposal after the EPFO allowed private players to manage PF funds.
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