Union Government allowed EPFO to invest 5 percent of its corpus in stock market [ Current Affairs ]
Union Government of India allowed Employees’ Provident Fund Organisation (EPFO) to invest 5 % of its corpus in Exchange Traded Funds (ETFs). Union Finance Minister of Arun Jaitley announced in the Union Budget 2015-16. He proposed a new investment pattern under which the EPFO would invest a minimum of 5 percent of its investable funds into equity and equity related schemes.
- The decision will result into an inflow of around 5000 crore rupees into the stock markets during fiscal 2015-16.
- The investment will begin by 1% and go up to 5 % by the end of the financial year. As per estimates, the EPFO’s incremental deposits for 2014-15 would be around 80 thousand crore rupees.
- The Employees’ Provident Fund Organisation is a statutory body of the Government of India under the Ministry of Labour and Employment which was founded on 4 March 1952 and its headquarters in New Delhi, India.
- It provides Provident Fund, Pension and Insurance schemes and The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 came into effect on 4 March 1952.
- Published on: April 30, 2015