The ETFs sale is likely to help meet the gap of 0.35 percent for the 8.5 percent PF rate for FY20, as committed by the Labour Ministry.
The Central Board of Trustees of the Employees' Provident Fund Organisation (EPFO) will meet on September 9 to seek nod for selling exchange-traded fund (ETF) investments worth Rs 6,000 crore, according to a CNBC-TV18 report.
The EPFO board will meet under Union Labour Minister Santosh Kumar Gangwar and the decision will require ratification by the Union Finance Ministry.
These ETF investments are from the calendar year 2016 and their sale is expected to garner Rs 2,700 crore as income to meet the 8.5 percent PF rate for FY20. This sale is likely to help meet the gap of 0.35 percent for the 8.5 percent PF rate for FY20 as committed by the Labour Ministry.
After meeting this requirement, the EPFO would still have a surplus of Rs 500 crore.
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These ETF investments could not be sold in March due to the situation in the market post the COVID-19 pandemic.
Earlier on March 6, at the meeting of the CBT, officials had said that EPFO had enough funds -- thanks to government bonds and securities -- to pay interest at the rate of 8.15 percent to its subscribers. The remaining 0.35 percent, officials had said, was expected to be encashed via ETFs.