EPFO fund managers to get 3 months extension

PTI New Delhi | Updated on November 20, 2017

Provident fund body EPFO's fund managers — ICICI Pru, HSBC, Reliance Capital and SBI — will get three months extension to manage the Rs 3 lakh crore retirement fund till June 30.

Although the term of the four fund manager's term ends on March 31, they will be asked to continue for three more months as the EPFO has not been able to complete the process of appointing new asset management companies.

“The existing fund mangers would continue to manage EPFO's Rs 3 lakh crore corpus till June 30 because of delay in appointment of new AMCs for a term of three years beginning April 1,” a source said.

The matter, he said, would be placed before the EPFO trustees on March 30 for final decision.

The Central Board of Trustees (CBT), which is headed by the Labour Minister, is the apex decision making body of the EPFO. “Since there is no possibility of new fund managers taking over from April 1, the proposal to give three months extension to existing AMCs is likely to be approved by the CBT,” he added.

EPFO had started the process of appointing the new fund managers last year after it engaged credit rating agency CRISIL for appointment and to later monitoring the performance of new fund managers.

As many as 11 AMCs have evinced interest to manage the EPFO huge corpus which receives incremental deposits of about Rs 30,000 crore every year. Besides the asset management companies managing EPFO corpus, seven firms, including Kotak Securities, Securities Trading Corporation of India, UTI Securities and ICICI Securities, have expressed interest to manage the retirement fund.

Published on March 16, 2011

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