Tuesday, February 1 2005 17:09 Hrs (IST) - World Time -

New Delhi: In a bid to earn higher return for its four crore subscribers, the country's biggest provident fund EPFO (Employees Provident Fund Organisation) is exploring the possibility of investing a small portion of its assets in equities.

"There is a finance and investment sub-committee under Employees Provident Fund Organisation, which will discuss it," Labour Minister K Chandrashekhar Rao said on the sidelines of ESIC board meeting here today (Feb 1, 2005).

The investment panel will meet this month to discuss the feasibility of investing a portion of EPFO funds in equities.

The proposal to invest EPF funds in equities would also be discussed with its banker SBI.

The move comes days after the Government allowed private provident funds, superannuation and gratuity funds to invest up to five per cent of their assets in equity of blue-chip companies.

After the EPFO investment panel takes a decision, the matter will be taken up by the Central Board of Trustees, which is also slated to meet in February to discuss the issue apart from deciding on the final interest rate on EPF to be paid to over four crore beneficiaries.