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EPFO to consider investing Rs 3,000 cr in AA+ rated corporate bonds

FAIC in its meeting decided to invest 2% of investible deposits in the AA+ rated corporate bonds

Press Trust of India  |  New Delhi 

According to investment norms, EPFO can invest 10% of its investible deposits in the corporate bonds with AAA rating

Retirement fund body has decided to invest in in the AA+ grade, a notch lower than the earlier norm of AAA, a move that will help it park around Rs 3,000 crore per annum in such securities.

The decision to invest 2 per cent of investible of the Organisation (EPFO) was taken by its advisory body, Finance, and Committee (FAIC), at its meeting held today.

"The EPFO's apex decision making body the had already authorised the to take decision regarding in AA+ rated corporate bonds," a source said.

"The in its meeting held today decided to invest 2 per cent of investible in the AA+ rated corporate bonds," the source added.

According to investment norms followed by the EPFO, the body can invest 10 per cent of its investible in the with rating of at least AAA.

The source said that the decision was taken in this regard after made a detailed presentation that the there are few options of investment in AAA rated in the and the body can explore the in AA+ rated

is expected to have investible deposits of around Rs 1.5 lakh crore in the current fiscal. Thus, now it can invest around Rs 3,000 crore in AA+ rated corporate bonds in a year.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, July 05 2017. 19:31 IST