A section of the media has reported that 5% of the total portfolio of non-Government Provident Funds, Superannuation Funds and Gratuity Funds has been directed by the Government to be mandatorily invested in equity shares of companies. This is not correct. It is clarified that this is only an enabling provision and only an additional window for investment has been opened. The Press Release issued on January 28, 2005 had made this position clear.
It is also clarified that the Public Provident Funds are not included in the description of the non-Government Provident Fund and hence the present notification does not apply to the Public Provident Funds.
DB/NSR
(Release ID :6796)