New Delhi: The Finance and Investment
Committee, the key advisory body of the Employees` Provident
Fund Organisation (EPFO), on Thursday deferred a decision on
investing EPFO funds in the stock market.
The FIC, according to sources, will take a final view
on parking 3 to 5 percent of the EPFO`s lager corpus of funds
totaling Rs 2.57 lakh crore on October 24.
It was also decided that representatives of the employees
and employers would meet for an hour before the October 24
meeting of the FIC.
The decision to investment small portion of corpus in
equity or other instruments would have resulted in about
Rs 13,000 crore flowing into the capital markets.
Ahead of the meeting, several trade union representatives
had expressed their reservations about permitting EPFO to park
part of its funds in the stock market and argued that it was
not proper to invest retirement funds in risky instruments.
At an earlier meeting of the FIC on August 18, an EPFO
official had suggested that the organisation could look for
investment in stock indices.
The Finance Ministry had first mooted the idea of
investing 15 percent of the EPFO corpus in equity to increase
returns on investment.