EPFO may soon raise equity exposure to 20%

  • July 19, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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EPFO may soon raise equity exposure to 20%

Subject : Polity

Section: Judiciary

Context: SC stays HC decision

  • EPFO invests equities in the form of exchange traded funds (ETFS) both Nifty and Sensex.
  • The finance committee of the Central Board of Trustees (CBT), the highest decision-making body of the Employees’ Provident Fund Organisation (EPFO), has suggested raising EPF exposure in equities to 20% of the fresh annual accretions from the present cap of 15%, the government informed Parliament on Monday.
  • Central Board of Trustees (CBT)
    • The Central Government reconstituted the CBT, EPFO under section 5A of Employees’ Provident Fund & Miscellaneous Provision Act

The key decisions of the Central Board, EPFO are:-

  • The Board approved the constitution of the following committees and authorized Chairman CBT, EPFO to nominate members to the Committees:-
    • Finance, Investment and Audit Committee
    • Pension & EDLI Implementation Committee
    • Exempted Establishments Committee
  • The Board mandated Finance Investment & Audit Committee (FIAC), a Sub Committee of the Board to select new Portfolio Managers for managing the corpus of EPFO.
EPFO may soon raise equity exposure to 20% Polity