EPFO's board has decided to invest a portion of annual deposits in infrastructure investment trustsThe main board of trustees of the employees' provident fund organisation (EPFO) has unanimously approved investing a small portion of its yearly deposits in infrastructure financial investment trusts (InvITs).
InvITs allow owners of infrastructure possessions to monetise them and operate like mutual funds, which guarantee routine returns on investment.According to main sources, the choice to invest a percentage of annual deposits in InvITs was taken during the conference of EPFO's main board of trustees, which was held on Saturday (November 20).
The board decided to empower the finance investment and audit committee (FIAC) to pick the investment options on case-to-case basis, for investment in all such property classes which are consisted of in the pattern of investment as notified by the federal government, a declaration issued by the labour ministry after the meeting, said.It also provided its clearance to set up 4 sub-committees.
These consist of panels on facility related concerns, futuristic execution of social security code, digital capability structure and on pension associated matters.During the meeting, the board of trustees also cleared for establishing a centralised IT-enabled system by C-DAC, after which, field functionalities will proceed a main database in a phased way making it possible for smoother operations and boosted service delivery.The centralised system will facilitate deduplication and merger of all provident fund accounts of any member.
It will remove the requirement of transfer of account on change of task.