| Govt allows pvt PFs to invest 15 pc funds in stock markets | |
| New Delhi, Aug 14 (PTI) Nearly a fortnight after ending the monopoly of SBI in managing EPF accounts, the government today allowed private provident, pension and gratuity funds to invest up to 15 per cent of their corpus in stock markets, a step seen as a financial sector reform.
Besides, norms regarding investment in securities have also been relaxed.
Under the revised investment pattern, these can invest up to 15 per cent of investable funds in shares of companies on which derivatives are available in the Bombay Stock Exchange or National Stock Exchange, said a Finance Ministry notification.
Guidelines, which would be applicable with effect from April 1, 2009, have been issued following public feedback on draft proposals released last year.
A senior finance ministry official had earlier said that government would impress upon the Employees Provident Fund, which has a corpus of over Rs 2,40,000 crore, to follow these investment guidelines.
Earlier on July 30, the government allowed private players HSBC, Reliance Capital and ICICI Prudential to manage the incremental funds of EPFO, subscribed by over four crore employees, thus ending the monopoly of state-run State Bank of India. PTI |
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