EPFO may suspend investment in private sector bonds, say sources

At present, the EPFO is mandated to invest 20-45 per cent of its incremental funds in debt-related instruments, according to its pattern of investment

The Employees’ Provident Fund Organisation (EPFO) is wary of its investments in private sector bonds and may cho­ose to not invest in such instruments for the time being, sources said. 

The move is aimed at preventing losses in such debt-related instruments as many private companies have seen a string of defaults and credit downgrades, the source said. 

The decision was taken at the meeting of the EPFO’s finance audit and investment committee held last month, a top EPFO official said, requesting anonymity. 

An FIAC member of the EPFO said its concurrent auditor had submitted a list of companies defaulting or