Navratna, Miniratna PSUs can park surplus funds with MFs, PSBs

Public sector enterprises such as Navratnas and Miniratnas are allowed to invest 30 per cent of their surplus funds in SEBI-regulated public sector mutual funds, however, they must park at least 60 per cent of excess funds with public sector banks, Parliament was informed today.
"Recently it has been decided that Navratna and Miniratna CPSEs can invest 30 per cent of their surplus funds in SEBI regulated public sector mutual funds.
"It has also been decided that at least 60 per cent of surplus funds should be placed with public sector banks," Minister of State for Heavy Industries and Public Enterprises P Radhakrishnan said in a written reply to Lok Sabha.

As per information available in the Public Enterprises Survey 2012-13, all central public sector enterprises (CPSEs) taken together have total cash and bank balances of Rs 2,66,600 crore.
These cash and bank balances are used by CPSEs for various commercial purposes including payment of dividend and tax, discharge of liabilities, working capital, capital expenditure, expansion, modernisation, acquisition, operational expenditure, deposits with banks/mutual funds, etc.
Decision on the investment of surplus funds is to be taken by Board of CPSE.