EPFO to consider crediting ETF units to PF accounts
New Delhi: The Employees’ Provident Fund Organisation is likely to consider a proposal to credit the subscribers’ share of its exchange traded funds (ETF) investments to their provident fund accounts which can be redeemed at the time of withdrawal.
EPFO’s decision making body Central Board of Trustee (CBT) headed by Labour Minister Santosh Gangwar will meet next month and is likely to consider the proposal to credit ETF investments to members’ accounts, said an official of the Labour Ministry.
The official said the issue was listed in the agenda of the CBT meeting held earlier this year and was referred to the Comptroller and Auditor General (CAG). The CAG had agreed to the proposal in principal but sought a few clarifications.
Once approved, the share of subscribers in the form of ETF units will be credited to their accounts.
As per estimates, EPFO’s investment in ETFs is expected to touch Rs 45,000 crore by the end of the current fiscal.
EPFO had started investing in ETF in August 2015, putting 5 per cent of its investible deposits in stock linked products. It was raised to 15 per cent for the current fiscal.
An ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.