EPFO to invest only in big firms

New Delhi: To get EPFO funds, listed companies would need to have a minimum market capitalisation of Rs 5,000 crore, even as the retirement fund body will invest only the exchange traded funds (ETF) in the current financial year. According to the new investment pattern notified for investing incremental deposits of EPFO, investment would be in “shares of body corporates listed on Bombay Stock Exchange (BSE) or National Stock Exchange (NSE) which have market capitalisation of not less than Rs 5,000 crore as on the date of investment”.

For current financial year, the Employees' Provident Fund Organisation (EPFO) has decided to invest around Rs5,000 crore, which is 5 per cent of its incremental deposits of around Rs 1 lakh crore, in exchange traded funds (ETF) only.

The new investment pattern notified on April 23 by the labour ministry states that EPFO will invest a minimum of 5 per cent and up to 15 per cent of incremental deposits in equity or equity-related schemes.   EPFO will invest in shares of those body corporates which have derivatives with underlying, trade in either of the two stock exchanges BSE or NSE.