NEW DELHI: Retirement fund body EPFO is more likely to consider subsequent month an offer to credit score subscribers' percentage of its ETF investments to their provident fund accounts which will also be redeemed at the time of withdrawal.
"Employees' Provident Fund Organisation's (EPFO) apex decision making body the Central Board of Trustee (CBT) headed by Labour Minister Santosh Gangwar will meet in November. They are likely to consider the proposal to credit ETF investments to members' accounts," a Labour Ministry legitimate informed PTI.
The legitimate stated that the issue was once listed on the time table of the CBT meeting held earlier this 12 months and was once referred to the Comptroller and Auditor General (CAG) .
The legitimate stated that the CAG had agreed to the proposal in predominant but sought few clarifications.
As according to estimates, EPFO's funding in ETFs is predicted to touch Rs 45,000 crore by the tip of the present fiscal.
EPFO had started investing in Exchange Traded Funds (ETF) in August 2015, putting 5 according to cent of its investible deposits in stock linked products. It was once raised to 15 according to cent for the current fiscal.
Once licensed, the proportion of subscribers within the form of ETF devices will be credited to their accounts.
An ETF is a safety that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an change.
EPFO, which has about 5 crore subscribers, manages a corpus of over Rs 10 lakh crore.
"Employees' Provident Fund Organisation's (EPFO) apex decision making body the Central Board of Trustee (CBT) headed by Labour Minister Santosh Gangwar will meet in November. They are likely to consider the proposal to credit ETF investments to members' accounts," a Labour Ministry legitimate informed PTI.
The legitimate stated that the issue was once listed on the time table of the CBT meeting held earlier this 12 months and was once referred to the Comptroller and Auditor General (CAG) .
The legitimate stated that the CAG had agreed to the proposal in predominant but sought few clarifications.
As according to estimates, EPFO's funding in ETFs is predicted to touch Rs 45,000 crore by the tip of the present fiscal.
EPFO had started investing in Exchange Traded Funds (ETF) in August 2015, putting 5 according to cent of its investible deposits in stock linked products. It was once raised to 15 according to cent for the current fiscal.
Once licensed, the proportion of subscribers within the form of ETF devices will be credited to their accounts.
An ETF is a safety that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an change.
EPFO, which has about 5 crore subscribers, manages a corpus of over Rs 10 lakh crore.
EPFO to consider crediting ETF units to PF accounts
![EPFO to consider crediting ETF units to PF accounts]()
Reviewed by Kailash
on
October 22, 2017
Rating:
