Business Daily from THE HINDU group of publications
Saturday, Dec 08, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Saturday, Dec 08, 2007 ePaper | Mobile/PDA Version |
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Industry & Economy
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Social Security Markets - Stock Markets
They could also be permitted to invest in rupee bonds issued by multilateral agencies Our Bureau New Delhi, Dec 7 The Government may next week give its nod for non-Government provident funds and gratuity funds to invest up to 10 per cent of their investible funds in the stock markets, a move that is likely to give a further boost to the benchmark stock indices such as Sensex and Nifty 50. “We had sought comments on the draft proposals relating to the proposed change in investment pattern. A number of comments have been received. A final decision will be taken next week after studying the comments”, a senior Finance Ministry official said. Besides enhancing the investment limits, the Government also proposes to make eligible new instruments where these funds could be invested. The draft proposals were made public in September this year. Till now, these funds were allowed to invest up to five per cent of their investible funds in shares of companies that had an investment grade debt rating from atleast two credit rating agencies. Now, it is proposed to raise the limit to up to 10 per cent. The requirement of two ratings from two agencies will also be reduced to one agency only. Moreover, the investment can also take place in shares of BSE sensex and NSE Nifty 50 companies and ELS of mutual bonds. They could also be permitted to invest in rupee bonds issued by multilateral agencies such as the World Bank and the Asian Development Bank and in term deposits of even private scheduled commercial banks, subject to certain conditions. More Stories on : Social Security | Stock Markets
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