PFs may get more leeway in equity investment

The government may allow non-government provident funds to invest up to 10 per cent incremental flows in the stock market, a senior finance ministry official said. The new norms for non-government provident funds are likely to be notified in two to three days.

Though the government currently allows provident funds to invest up to 5 per cent incremental flows in stock markets, the largest non-government provident fund, the Employees’ Provident Fund, does not invest in stocks.

The government had revised these guidelines for non-government provident funds in January 2005.