ESIC to invest up to 15 per cent surplus funds in equity through ETFs

In a bid to accrue better returns on its surplus funds, the government, on Sunday, allowed Employee State Insurance Corporation (ESIC) to invest up to 15 per cent of its surplus funds into equity through exchange-traded funds (ETFs).

The decision was taken at an ESIC meeting chaired by the Union labour minister Bhupender Yadav at the corporation's headquarters in New Delhi.

A labour ministry statement said that the decision to invest surplus funds into equity was taken due to the low returns on debt instruments and the need to diversify the corporation's portfolio. Initially, the investment will be restricted to