NEW DELHI Feb 9 India is considering allowing
the state-run social security and pension fund to invest more in
the stock market, Labour Minister Bandaru Dattatreya said on
Dattatreya said the government was examining a proposal to
let the Employees' Provident Fund Organisation (EPFO) invest 15
percent of its corpus via exchange-traded funds compared with 10
percent at present.
The issue would be taken up in the next meeting of the
Central Board of Trustees (CBT) of the fund, he told reporters
at an event organised by industry group Assocham.
The social security fund, which manages more than 8.5
trillion rupees ($127 billion), has been paying a return of over
8 percent to its near 40 million subscribers.
In August 2015, the fund manager entered the equities market
for the first time, channelling 5 percent of its investments
into ETFs. Last year, it raised its equity allocation to 10
percent, despite opposition from some trade unions.
($1 = 66.9250 Indian rupees)
(Reporting by Manoj Kumar; Editing by Douglas Busvine)