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Ambarish Mukherjee

New Delhi, Sept. 12 The Employees Provident Fund Organisation (EPFO) has decided to transfer funds to newly-appointed private fund managers on September 15, senior officials in EPFO told Business Line.

“We are trying our best to transfer at least some funds by Monday,” senior officials said.

The entire Rs 29,000 crore incremental deposit lying with the EPFO, collected during the first eight months of 2008, will not be transferred in one day but in phases as the new fund managers will have to invest the amount on the very same day they receive the amount, officials pointed out.

This first phase of transfer slated for Monday will take place three days ahead of the special meeting of the Central Board of Trustees (CBT) convened on Thursday. This is for the first time in the history of the EPFO that funds are being handed over to fund managers without the CBT being aware of the details of how much is being given to which fund manager, CBT members said.

The CBT, in its last meeting, had appointed four fund managers. Crisil, which had been appointed by the EPFO as consultant to select fund managers, had recommended only three fund managers, namely HSBC AMC, ICICI Prudential AMC and State Bank of India. Reliance Capital AMC emerged as a surprise fourth fund manager at the last moment in the meeting, taking the total number of fund managers to four.

Initially it was decided that the lowest-bidder HSBC AMC would be given funds in the range of Rs 10,000-12,000 crore, second lowest bidder ICICI Prudential AMC would get anywhere between Rs 8,000 crore and 9,000 crore and the third bidder SBI will receive funds in the range of Rs 7,000-8,000 crore. EPFO officials said that with the entry of the fourth fund manager, the amount to be handed over to each has been reworked but declined to provide details.

The Labour Minister, Mr Oscar Fernandes, who is the Chairman of the board of trustees of the EPFO, when contacted for details of the agreement between the EPFO and the fund managers, said that the agreements would be put on the EPFO Web site. However, this still remains to be done.

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