Employees Provident Fund Decides to Increase Exposure for Public Financial Institutions and PSUs Investments

The 191st Meeting of the Central Board of Trustees, Employees Provident Fund Decides to Increase Exposure for Public Financial Institutions and PSUs Investments

The 191st meeting of the Central Board of Trustees, Employees Provident Fund was held under the Chairmanship of Shri Mallikarjun Kharge, Minister for Labour and Employment and Chairman, Central Board of Trustees (Employees’ Provident Fund), in New Delhi Yesterday. Minister of State for Labour and Employment and Vice Chairman of the CBT, EPF Shri Harish Rawat was also present in the meeting. Welcoming the Members Shri Kharge recollected the Board’s decision recommending the interest rate for the year 2009-10 to 9.5 per cent, approved enhancement of Employees Deposit Linked Insurance ( EDLI) benefits through unanimous decisions in its last meeting on September 15, 2010. The Board in its 8th regular meeting adopted the Annual Report of the Organization for the year 2009-10. It also approved the revised estimates for the year 2010-11 and Budget Estimates for the year 2011-12. It also resolved to consider the annual audited accounts for the year 2009-10 in its next meeting in January next year. The Board has approved the issue of expansion of investment limits in terms of net worth in Public Sector Financial Institutions and Public Sector Undertakings.

The Board has decided to raise its limit to 50 per cent of net worth for dual ‘AAA’ rating PSUs from the present limit of 40 per cent. In case of ‘AA + and AA rated’ PSFIs, the limit has been raised to 40 per cent from the present limit of 25 per cent of the net worth. This decision would augment the yield on such investments in future. The Board also took note of the progress report of the on-going computerization programe in the organization. This would improve the service for faster credit of refund to Members’ Bank Account as CBS and NEFT facility has been introduced. E-Chillan facility has been introduced for depositing contributions and returns by employers on pilot basis in some Offices, which will be introduced in all Offices gradually.

The Board has decided to defer further investment in the LIC Housing Finance Limited till the probe the company is facing for not following prudent exposure norm and due diligence in extending advances to real estate company is clarified. In order to get higher yield through higher interest and capital gain the Board has allowed shifting of investment from the Bonds issued by India Infrastructure Finance Company Limited (IIFCL) to State Development Loans (SDLs) as a onetime measure.

Secretary, Shri P.C.Chaturvedi and Central Provident Fund Commissioner, Shri Samirendra Chatterjee were also present in the Board Meeting.

Source;PIB

(Release ID :68363)