The CBT had empowered the FIAC to decide upon the investment options.
The Finance Investment and Audit Committee (FIAC) of the Employees’ Provident Fund Organisation (EPFO) is likely to deliberate on fresh investment opportunities in new alternate investment funds (AIFs), including infrastructure investment trusts (InvITs), in its scheduled meeting Wednesday.
The Central Board of Trustees (CBT), the highest decision-making body of the EPFO, had in November decided to empower the FIAC to take a call on investing in new asset classes like InvITs. The CBT is headed by the Union labour minister.
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The CBT had empowered the FIAC to decide upon the investment options, on a case-to-case basis, for investment in all such asset classes which are included in the pattern of investment as notified by central government.
As per the notified investment pattern, the EPFO can invest its incremental deposits, amounting to around Rs 1.8 lakh crore a year, between 45%-50% in government securities, 35-45% in debt instruments, up to 5% in short-term debt instruments, between 5-15% in equities and up to 5% in asset-backed, trust-structured and miscellaneous investments.
The asset-backed, trust-structured and miscellaneous investment category was modified in April last year to give way for investment in units issued by Category I and Category II AIFs regulated by the Sebi. The EPFO has not exercised these options so far. Sources said the advisory body will also deliberate on framing standard operating procedures for exiting investments made in equities and other instruments.
