New Delhi: The central board of the Employees Provident Fund Organisation (EPFO) could not reach a decision on Wednesday on hiking its equity exposure to 15%.
The board, led by labour minister Bandaru Dattatreya, deferred the decision to the next meeting.
Currently, EPFO invests 10% of its annual accruals in equities through exchange traded funds (ETFs).
This is the second time EPFO has failed to reach a decision on hiking equity exposure even though the finance ministry wants it to do so.
“The proposal to allocate more to ETF was deferred. Now it will be vetted by the finance audit and investment committee before the central board takes up the case,” said P.J. Banasure, a central board member of the EPFO.
The decision to defer the proposal follows opposition from trade unions. Labour ministry officials, however, reiterated that increased equity exposure will bring better returns to EPFO subscribers.
Since August 2015, EPFO has invested around Rs18,000 crore in ETFs.