EPFO board to decide on raising investment in stocks to 15 per cent

The board of retirement fund body EPFO is more likely to approve the notion to increase its investment in stocks to fifteen per cent of investible deposits in 2017-18, from the present 10 per cent.

"The investment within the alternate Traded funds (ETF) will also be raised to fifteen per cent of the investible deposits in a CBT assembly scheduled the next day to come," a supply stated.

The relevant Board of Trustees, the apex decision making physique at EPFO, had deferred a call on the concept to extend exposure in ETFs in its ultimate assembly on March 30. The retirement fund physique invests part of its investible deposits in shares via ETFs.

The supply said that the revised agenda for the meeting contains the status report on the ETF funding through the EPFO. "whereas offering the standing report back to trustees, the idea to support the investments in the ETF would be mooted and is more likely to be approved the next day," the supply introduced.

The board may also make a decision on beef up the wage ceiling for protection beneath the EPFO schemes to Rs 25,000 monthly from present Rs 15,000. The EPFO trustees might also discuss the concept to amend the EPF & MP Act for making provident fund contributions not obligatory for workers in attire and made-usasector, the supply said.

The EPFO had entered the inventory market with the aid of investing 5 per cent in August 2015, which used to be raised to 10 per cent closing 12 months. then again, exchange unions are anticipated to resort their protest against striking cash in inventory markets in view of volatility

in fairness investments.
An EPFO trustee and All India change Union Congress Secretary D L Sachdev stated, "we have now been opposing the investments in inventory market. but the govt has been investing EPFO cash in fairness linked scheme regardless of dissent note with the aid of the principal alternate unions on the difficulty."

previous in 2015, the finance ministry had allowed personal provident funds to speculate 5-15 per cent of its investible deposits in equity or fairness-linked schemes. In view of the unstable nature of stock markets, the EPFO had then decided initially investing simply 5 per cent of its over Rs 1 lakh crore investible amount in ETFs.

The EPFO has invested Rs 18,069 crore in ETFs till February 18, 2017 and yielded a return of 18.thirteen per cent on these investments. past, Labour Minister Bandaru Dattatreya had indicated that the EPFO will elevate its funding in the ETF in the backdrop of good returns.
in addition to, the source said that the EPFO trustees might also talk about the inspiration to amend the EPF & MP Act for making provident fund contributions non-compulsory for workers in attire and made-united states of americasector.

the issue was discussed and deferred within the ultimate CBT assembly the place the unions had antagonistic the move pronouncing that it might set a unsuitable precedent of giving exemption from PF contributions to staff.

The Centre in June last introduced a package for the fabric and apparel sector which was later prolonged to made-u.s.a.also in December 2016. amongst other sops within the package, it used to be announced that EPF will be made non-compulsory for workers incomes lower than Rs 15,000 per thirty days in these segments.

on the other hand, it was a cupboard decision but it could possibly now not be carried out with out amending the EPF & MP Act 1952. The source mentioned that the board might also take the proposal to beef up the wage ceiling for coverage under the EPFO schemes to Rs 25,000 per 30 days from present Rs 15,000.

it's estimated that this could usher in one crore more staff underneath the social security schemes run by the EPFO. meanwhile, the EPFO has prolonged the ultimate date for submission of lifestyles certificate for its over 50 lakh pensioners to April 30, 2017.

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