EPFO halts investment in private sector bonds due to NBFC crisis

At present, the EPFO is mandated to invest 20-45 % of its incremental funds in debt-related instruments

Somesh Jha  |  New Delhi 

The Employees’ Provident Fund Organisation (EPFO) has decided to halt investment in private sector bonds, following defaults triggered by the crisis in non-banking financial companies (NBFCs).

The EPFO wrote a letter to its portfolio managers — UTI Asset Management Company (AMC), ICICI Securities Primary Dealership, Reliance AMC, and HSBC AMC — on Thursday to convey its decision. “It is to inform that due to the recent downgrades and defaults in some private sector bonds and heightened risk, investments in bonds of private sector companies was ...

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First Published: Thu, June 20 2019. 23:48 IST