FinMin allows PSUs to invest in debt schemes of all mutual funds

The communication by DIPAM said that only Maharatna, Navratna and Miniratna CPSEs are permitted to invest in debt-based schemes of mutual funds

The finance ministry — in an office memorandum on Wednesday —allowed public sector undertakings (PSUs) to invest in debt schemes of all mutual funds.

Earlier, provisions limited central public sector enterprises (CPSEs) to investment in public sector mutual funds only, in which the government held more than 50 per cent share.

“The period of maturity of any instrument of investment shall not exceed one year from the date of investment, except in case of term deposits with banks and government securities where it can extend up to three years,” it added.

The department of investment and public enterprises (DIPAM) —