EPFO investment in ETFs in Rs Rs 86,966 cr until September
New Delhi, December 2 () The EPFO retirement fund agency has invested Rs 86,966 crore in quoted funds (ETF) until September 2019, Parliament said on Monday.
EPFO has been investing in ETF since August 2015. Initially, the agency decided to invest 5 percent of its invertible deposits in the stock markets. Later, the proportion increased to 10% in 2016-17 and to 15% in 2017-18 and beyond.
The Employee Pension Fund Organization (EPFO) is investing in ETFs based on Nifty 50, Sensex, Central Public Sector Companies (CPSE) and Bharat 22 Indices.
The total amount invested by EPFO in ETF as of September 30, 2019 is Rs 86,966 crore. The Central Board of Trustees (CBT), Employee Pension Fund (EPF) at its 207th meeting held on March 31, 2015 decided to invest only in ETF in the category of related actions and investments, said Labor Minister Santosh Gangwar , in a written response to Lok Sabha.
The minister told the Chamber that EPFO does not invest in stocks and shares of individual companies.
The Employee Pension Fund and Miscellaneous Provisions Act (EPF and MP) of 1952 applies to all establishments that employ 20 or more people.
In order to extend the benefits of social security to all eligible workers in the country, continuous efforts are made to bring to coveted establishments under Act EPF and MP, 1952 and also to place eligible employees under the umbrella of the schemes of the Law.
The minister told the Chamber that, as of March 31, 2019, 197 industries/classes of establishments are notified of the coverage that has brought 4.69 million contributing members within the scope of EPFO. KKS KKS ANU ANU