New Delhi. Retirement fund body EPFO on Saturday said it has enabled its advisory body Finance Investment and Audit Committee (FIAC) to decide on investments in new asset classes like InvITs.
Presently, the National Highways Authority of India (NHAI) and Power Grid Corporation (PGCIL) have offered Public Sector Infrastructure Investments (InvITs). EPFO will also invest in public sector bonds. The decision was taken in the 229th meeting of the Central Board of Trustees (CBT), the apex decision-making body of EPFO, chaired by Union Labor Minister Bhupendra Yadav.
Decision to invest in new government instruments
Asked whether EPFO will invest in private sector InvITs, Yadav said after the meeting, “At this point of time, we have decided to invest only in new government instruments (bonds and InvITs). There is no percentage for this. This will be decided by the FIAC on a case to case basis.
The 229th Central Board of Trustees (CBT),EPF met today under charimanship of Union Minister of Labour & Employment Sh Bhupender Yadav and Sh Rameswar Teli, Union Labour & Employment Minister of state,the vice chairman.Check out the key decisions made here https://t.co/DTPrY0NchO
— EPFO (@socialepfo) November 20, 2021
The board decided to empower the FIAC to decide on investment options on a case to case basis, an official statement said.
Explaining this decision, Labor Secretary Sunil Barthwal said, “If we want to give higher interest rate, then we have to follow the guidelines of the Ministry of Finance. There are some instruments where we were not able to invest due to various reasons. Now we will be able to invest in those instruments.”
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