Union Government allows EPFO to invest 5% corpus in stock markets

Union Government has allowed Employees’ Provident Fund Organisation (EPFO), India’s retirement fund body to invest five per cent of its corpus in exchange traded funds i.e. in stock markets.
In this regard, Union Labour ministry has notified the new investment pattern for the EPFO.
The new pattern allows EPFO to invest 5% of its incremental income in Exchange Traded Funds (ETFs) from the current financial year i.e. 2015-16.
This limit will start from 1% with an effect from April 1, 2015 and reach upto 5% by the end of the FY 2015-16.
This decision of Union Government will result in an inflow of around 5000 crore rupees into the stock markets during this fiscal.
The EPFO has more than 5 crore subscribers across the country and has a corpus of over Rs 6 lakh crore.

Month: Current Affairs - April, 2015