EPFO could put money into non-public company bonds

Looking to maximise yields, the Employees’ Provident Fund Organisation (EPFO) is prone to begin investing once more in company bonds issued by non-public sector corporations, after a spot of over two years.
As per the present funding sample, the EPFO can make investments as much as 20 per cent of its annual incremental deposits — round Rs 36,000 crore at current — in company bonds. But the investments have lately been restricted to bonds of public sector corporations.
Options like when to put money into private-sector bonds and when and how one can exit from such investments have been mentioned on the retirement fund physique’s Finance Investment and Audit Committee (FIAC) assembly on Wednesday.

“No concrete decision has been taken today. We have been discussing the issue since last couple of meetings and today, we extended that discussion and deliberated from various angles of risk versus gain and on aspects of such investments,” mentioned Okay E Raghunathan, a FIAC member and in addition a member of the Central Board of Trustees (CBT), the best decision-making physique of the EPFO and headed by the Union Labour Minister. FE