Making The Money Work
*The government would also press upon the EPFO, which has a corpus of Rs 2,40,000 crore, to implement these guidelines
* Currently, the investment guidelines for employees provident fund allow it to invest five per cent directly in equity and 10 per cent in equity-oriented mutual funds
"The investment guidelines for non-government superannuation trust funds allowing 10 per cent investment in stock markets could be issued in next two-three days," a senior finance ministry official said.
The guidelines would be issued about 11 months after the finance ministry issued draft proposals calling for increase in their capital markets exposure.
The government would also press upon the EPFO, which has a corpus of Rs 2,40,000 crore, to implement these guidelines, the official said, adding that the final decision in this regard would be taken by the Central Board of Trustees (CBT).
Click On "Full story" for More..
By Mr Chitranjan, Section News
Posted on Tue Aug 12, 2008 at 02:47:55 AM EST
 |
The finance ministry in September 2007 had come out with draft proposals, doubling the capital market exposure for private provident funds, superannuation funds and gratuity funds from existing five per cent to 10 per cent. Besides, it also proposed to reduce -- from 40 per cent to 35 per cent -- the amount that the funds need to invest in securities issued by the central and the state governments.
These investment guidelines are being framed as requirement of Income Tax Act by the ministry, he said. On the corpus of the such funds, he said, there is no centralised data available. The government has started collecting data. Government has already allowed the entry of private players to manage provident fund of employees.
Source: Express News Service 12/Aug/2008
| < RBI Hikes BPLR by 1% to 14%, Hike Will Make BPLR-Related Loans Of The Bank Dearer To Its Customers |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
