EPFO to review contract with CRISIL

NEW DELHI: The Employees' Provident Fund Organisation (EPFO) will soon take a call on its contract with rating agency CRISIL, which was appointed by it to rate the performance of fund managers.

The issue of extending the contract with CRISIL is likely to come up for discussion at the meeting of the Finance and Investment Committee (FIC), an advisory body of EPFO, on August 18.

The tenure of the contract between EPFO and CRISIL ends on September 17, 2009.

EPFO, according to sources, is keen on extending the contract for one more year in view of the satisfactory performance of CRISIL.

The Organisation, which manages a corpus of Rs 2.57 lakh crore with 4.5 crore PF depositors, had engaged CRISIL in 2008 to help it in appointing fund managers.

Besides assisting EPFO in appointment of fund managers, CRISIL was also required to set up a monitoring cell to evaluate and monitor performance of the fund managers.

EPFO, with the assistance of CRISIL, had appointed State Bank of India, HSBC AMC, ICICI Prudential AMC and Reliance AMC as fund managers.