Insta
EPFO Gets Central Board's Nod To Invest Up To 5 Per Cent Of Annual Deposits In InvITs, Alternative Funds: Report
Swarajya Staff
Nov 20, 2021, 03:38 PM | Updated 03:40 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The Employees’ Provident Fund Organisation (EPFO) will be investing up to 5 per cent of its annual deposits in alternative investments including infrastructure investment trusts (InvITs), reports MoneyControl.
The central board of the EPFO has approved the proposal to invest in alternative investments.
The move will be diversifying the investment basket of the EPFO as the central government had already permitted investments in alternative investment funds (AIFs) earlier this year.
Sunil Barthwal, secretary of the labour and employment department, told Moneycontrol, “The board has given its go-ahead. We shall only focus on government-backed alternatives which are category one funds like public sector InvITs.”
The overall corpus of the EPFO has been growing which has necessitated the diversification of investments.
Moreover, the demand for long-term funds in the larger infrastructure space has also enhanced accordingly.
InvIT are regulated by the Securities and Exchange Board of India (SEBI) and allows infrastructure project developers to monetise their assets by pooling several assets under a single entity.
Small and medium-sized enterprises (SME) funds, social venture funds are some other alternatives in the category one segment of AIF that are also regulated by the SEBI.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.