EPF contributions can be invested in Units of Debt Exchange Traded Funds

The Ministry of Labor and Employment has amended its previous notification on 04.01.2021 to include Units of Debt Exchange Traded Funds (ETFs) as an instrument in which EPF contributions can be invested. The Ministry through notification dated the 29th May, 2015 has directed the board of Trustee to invest every month Employees Provident Fund received from contributions from the employee and the provident fund accumulations in respect of the establishment in the pattern provided in the notification. The notification provides that it can be invested in debt instruments and related Investments and the amendment has added the following to that list of debt instruments:

• ” Units of Debt Exchange Traded Funds (ETFs) regulated by the Securities and Exchange Board of India and managed by an asset management company appointed as per an agreement with Government of India, specifically meant to invest in the bonds of the Central Public Sector Enterprises, Central Public Sector Undertakings, Central Public Financial Institutions and other Government organizations:”