July 22nd, 2018 / 10:44 PM
Courtesy:The Financial Express| Image Credits:Money Control,Santosh Gangwar/FB
As per the announcement made on July 18, The Employees’ Provident Fund Organization (EPFO) has invested Rs. 48,946 crore in Exchange Trading Funds (ETFs) as of June 30, 2018.
This announcement was made by the Government to the Parliament. In reply to the information in Rajya Sabha, Labour Minister Santosh Gangwarwrote, “The total amount invested by EPFO in ETFs as on June, 2018 is Rs. 48,946 crore.”
EPFO does not make investments in shares or equities of individual companies, but their investments in ETFs are based on Nifty 50, Sensex, Central Public Sector Enterprises (CPSEs) and Bharat 22 indices.
Central Board of Trustees (CBT), which is the topmost decision-making body in EPFO, had agreed to invest only in the ETFs amongst the other equity and related investments. This decision was taken during its 207thmeeting on March 31, 2015.
Having updated the same, in another reply, Gangwarsaid, “The CBT in its 222nd meeting held on June 26, 2018 has considered a proposal for insertion of paragraph 68HH in the EPF Scheme, 1952 which states that a member who is no longer in employment for a continuous period of one month, is eligible to avail (withdraw) 75 percent of the total fund standing to his credit.”
As per the earlier norm, stated in paragraph 69(2) of Employees’ Provident Funds (EPF) Scheme, 1952, a member could withdraw the full amount standing to his/her credit in the fund on ceasing to be an employee in an establishment for a continuous period of two months immediately preceding the date on which he makes an application for withdrawal. The requirement of two months waiting period did not, however, apply in cases of female members resigning from the services of the establishment for the purpose of getting married.
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Written by : Devika Deshpande (Guest Author)
Edited by : Shraddha Goled