Kharge rejects Finance ministry's 'advice'
Bangalore, Sep 18 (UNI) Union Labour Minister Mallikarjuna Kharge today said his Ministry will not heed to the 'advice' made by the Finance Ministry to invest 15 per cent of the funds in the Provident Fund account in stock market.
At present, only five per cent of the Rs 3,00,000 crore in the fund is being invested in the equity market under the strict advice of the financial consultants hired by the Employees Provident Fund Organisation (EPFO).
Speaking to UNI, Mr Kharge, who is the Chairman of the Central Board of Trustees of the EPFO, said safety of the PF funds will be of paramount importance for his ministry and the organisation would continue to invest only in recognised institutions like RBI, SBI, public sector units and other governmental organisations, which give guarantee of certain percentage of returns.
''We cannot take risk when it comes to the funds saved for years by the employees. PF is their lifetime savings and the only guarantee that will help them lead a comfortable retired life.
''Finance Ministry has asked us to increase the funds placed in open market to 15 per cent. But this will not happen. If the government gives us guarantee for our original capital and the returns in terms of interest or dividend, then we can see. But we cannot play into the hands of the open market'' he stressed.
Source: UNI India