PATTERN OF INVESTMENT BY NON-GOVERNMENT
PROVIDENT FUNDS, SUPERANNUATION FUNDS AND GRATUITY FUNDS AMENDEND
The Government has
amended the guidelines regarding the pattern of investment to
be followed by Non-Government Provident Funds, Superannuation
Funds and Gratuity Funds. Short duration term deposit receipts
issued by Public Sector Banks has been added as an eligible instrument
for investment for incremental accretions. The percentage amount
to be invested in bonds/securities of Public Financial Institutions,
Public Sector Companies including Public Sector Banks has been
reduced from the existing 40% to 30%. However, more flexibility
has been given to Trustees as in the residual category, the percentage
to be invested has been increased from 20% to 30%. Further, in
case any instruments mentioned in the investment pattern being
rated and their rating falling below investment grade and the
same rating being confirmed by two credit rating agencies, then
the option of exit can be exercised.
