The EPFO is yet to consider the proposal to increase the investment limit in shares from 15 per cent to 20 per cent. The representatives of the employees had demanded a comprehensive discussion in this regard.
The EPFO is yet to consider the proposal to increase the investment limit in shares from 15 per cent to 20 per cent.
Retirement fund management body EPFO has invested in shares Investment The proposal to increase the limit from 15 per cent to 20 per cent has not yet been considered. The representatives of the employees had demanded a comprehensive discussion in this regard. Employees’ Provident Fund Organization (EPFO) trustee Harbhajan Singh said that the proposal to increase investment in shares or share-related schemes was not put up for consideration in the 231st meeting of the Central Board of Trustees held on July 29 and 30.
Why was the proposal opposed?
Singh said the proposal was opposed by the representatives of the employees in the EPFO executive meeting held earlier this week. He said that in view of the volatile nature of the stock markets, there is a need for more detailed discussions before revising the investment format of EPFO.
In view of this suggestion, the proposal to increase investment in shares or related schemes was withdrawn under the revised agenda of the meeting of the Board of Trustees. It was proposed to increase the allocation of investable funds in share-related schemes to 20 per cent from the existing 15 per cent.
At present, the EPFO can invest anywhere from 5 per cent to 15 per cent of the investible deposit in shares or share related schemes.
The information was given by the minister in the Lok Sabha
The Finance Accounts and Investments Committee (FAIC), which advises the EPFO, has supported and approved the proposal to revise this limit to 20 per cent. This recommendation was to be considered and approved by the CBT, the apex decision making body of the EPFO. But this could not be done due to protests.
Earlier this month, the Minister of State for Labor and Employment, Rameshwar Teli, in a written reply in the Lok Sabha, informed about the recommendation to increase the investment limit. But employee organizations have opposed any investment of EPFO in the stock markets, saying that it is not guaranteed by the government.
Apart from this, let us tell you that financial help can be taken in the form of advance from EPFO for the cost of treatment. Since the government has declared Kovid-19 a nationwide pandemic, the members of the EPF scheme working in companies and factories across the country are entitled to get the advance amount.
(with language input)