No changes to equity investments


Updates from EPFO: The Employees Provident Fund Organization did not accept the proposal to increase investments. The decision was due to take place at the 231st meeting of the central board of directors last weekend, increasing investments from 15% of the additional flows to 20%. However, despite concerns raised by employee representatives and the need for further deliberations, the proposal was rejected.

Among other moves, the Employees Provident Fund Organization has also launched a facial authentication feature to provide its 72 lakh retirees with the ability to submit digital life certificates from anywhere.

The agenda for the meeting included the proposal to raise the investment cap for shares, but this was later withdrawn, an employee representative said.

“The proposal was on the agenda but was later withdrawn. Employee representatives had raised concerns about this in a previous meeting, as increasing the equity investment ceiling could be risky,” the board member said.

The topic has been pushed back to future meetings of the Financial Investments and Audit Committee, as Labor Department officials say more informed discussions need to take place before a decision is made.

EPFO may invest up to 15% of its funds in shares, in accordance with internal guidelines. It invests only in exchange-traded funds and not in individual stocks.

EPFO’s rate of return on investments is gaining momentum as the pension fund body opted to lower its interest rate for 2021-22 to 8.1%, the lowest in four decades.

The CBT has also given its approval for the centralized payment of pensions to further improve services for retirees, according to a statement from the Ministry of Labour.

An Employee Pension and Deposit Insurance Scheme Calculator has also been launched, giving policyholders the online option to calculate the pension and death insurance benefits for which they are eligible.

The fund body also approved the appointment of Citibank as securities depositary for three years, as well as a proposal to extend the term of the current depositary Standard Chartered Bank until the new depositary takes over. , in addition to the ratification of the mandate of SBI MF and UTI. MF as ETF managers.

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