(a) whether the Government proposes to invest employees
pension fund in the capital market;
(b) if so, the present position of such proposals alongwith
the details thereof;
(c) whether the Government proposes to allow Foreign Direct
Investment (F.D.I.) in the employees pension fund and
appoint private funds managers in this area; and
(d) If so, the details and the current status thereof?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S. S. PALANIMANICKAM)
(a) and (b): The pattern of investment to be followed by
non-Government provident funds, superannuation funds and
gratuity funds was notified by the Ministry of Finance vide
notifications dated 24th and 29th January, 2005. This,
inter-alia, permits investment upto 5% in shares of companies
that have an investment grade debt rating from at least two
credit rating agencies. However, the investment pattern
has not been notified by the Ministry of Labour and
Employment as required under paragraph 52 of the Employees`
Provident Fund Scheme, 1952. Accordingly, investment of
the funds belonging to the employees pension fund in the
capital market does not arise.
(c): No, Sir.
(d): Does not arise in view of (c) above.