Read on the application
EPFO Latest News: Employees’ Provident Fund Organization (EPFO) has been permitted to invest in redemption income equity. The condition is that it should not exceed the prescribed limit. Let us tell you that EPFO’s equity investment is only through Exchange Traded Fund (ETF) and the total investment till July 31 is more than Rs 2 lakh crore. As per Finance Ministry guidelines, EPFO can invest between 5% to 15% of its income in equity and related funds etc.
Now a new clause has been added
According to Business Line news, a new clause has been added in this regard from August 24, 2023. As per the guidelines, now EPFO can invest in companies listed on BSE and NSE. These will be companies with a market cap of Rs. 5000 crores or more.
The notification has been released earlier as well
Two notifications have already been issued by the government regarding EPFO investment. The notification dated 23 April 2015 talks about EPFO related investments. Another notification dated May 29, 2015 discusses investment limits etc.
Interest is also affected
Actually, EPFO invests the amount deposited in the PF account holder’s account differently. A part of the income earned through this investment is given to the PF account holders in the form of interest. EPFO has more than 6.5 crore customers. For the financial year 2022-23, subscribers are being paid 8.15% interest on the amount deposited in the PF account.