The Employees' Provident Fund Organisation's advisory committee today turned down a proposal of the Finance Ministry to invest up to 15 per cent of its corpus in stock markets.
The Finance and Investment Committee of the EPFO, which met this morning, unanimously rejected the proposal for parking up to 15 per cent of its funds totalling around Rs 1,82,000 crore into shares of listed companies as also equity linked schemes of Mutual Funds.
The committee, sources said, was opposed to the proposal of the Finance Ministry in view of the volatility witnessed in the stock markets in the recent past.
The Finance Ministry in August last year had suggested a new investment pattern to the EPFO under which the organisation could park up to 15 per cent of its funds in the companies listed on Bombay Stock Exchange and National Stock Exchange and also the equity-linked schemes of Sebi-regulated Mutual Funds.
The recommendations of the finance and investment committee are usually accepted by the EPFO's Central Board of Trustees, which is headed by the Labour Minister, which has the final say on such matters.
