(a) whether the Government is aware of any proposal regarding investment of inflow of cash from Public Sector Enterprises (PSEs) into equity and debt schemes;
(b) if so, the details thereof;
(c) whether the Government has laid down any guidelines in this regard; and
(d) if so, the details thereof?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) to (d) : The Cabinet Committee on Economic Affairs has recently
approved relaxation of the prohibition on investment of surplus
funds by PSEs in mutual funds. However, it has restricted the
relaxation to Navaratna and Miniratna Public Sector Enterprises
investing in public sector mutual funds subject to the condition
that they would not invest more than 30% of the available surplus
funds in equity mutual funds and the Board of PSEs would decide
the guidelines, procedures and management control systems for such
investment in consultation with their administrative Ministries.