EPFO, a retired fund body in India has invested Rs 86,966 crore in Exchange Traded Funds (ETFs) till September, 2019. The information has been provided by Santosh Kumar Gangwar, MoS Labour and Employment on tuesday in Lok Sabha.
EPFO’s investment in ETF’s has been going on since August 2015. The retired fund body has increased its investible deposits into stock market to 15 percent since 2017-18.
Employees’ Provident Fund Organization (EPFO) is investing in ETFs based on Nifty 50, Sensex, Central Public Sector Enterprises (CPSEs) and Bharat 22 Indices.
Santosh Gangwar, Labour Minister, gave a written reply to the Lok Sabha, “The total amount invested by EPFO in ETFs as on September 30, 2019 is Rs 86,966 crore. The Central Board of Trustees (CBT), Employees’ Provident Fund (EPF) in its 207th meeting held on March, 31, 2015 decided to invest only in ETFs in the category of equity and related investments.”
The minister informed the House that the EPFO does not invest in shares and equities of individual companies.
The Employees’ Provident Funds & Miscellaneous Provisions (EPF & MP) Act, 1952 is applicable to every establishment employing 20 or more persons which is either a factory engaged in any industry specified in Schedule–I of the Act or an establishment to which the Act has been made applicable by the Central Government by notification in the Official Gazette.
In order to extend social security benefits to all eligible workers in the country, continuous efforts are made to bring the coverable establishments under the EPF & MP Act, 1952 and also for bringing the eligible employees under the umbrella of Schemes under the Act.
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