Govt to review norms for PSU investment in MFs in August
The government will review in August its decision to allow bluechip state-owned companies to invest 30 per cent of their surplus funds in public sector mutual funds.
By PTI |
NEW DELHI: The government will review in August its decision to allow bluechip state-owned companies to invest 30 per cent of their surplus funds in public sector mutual funds.
The decision permitting the Navratnas and Mini-Ratnas CPSEs to invest not more than 30 per cent of the available surplus funds in the SEBI-registered public sector MFs will be reviewed after three months, sources in the Finance Ministry said.
Till then, the public sector companies will be allowed to remain invested in the mutual funds managed by PSU banks, sources added.
The government last year had allowed the profit-making central public sector enterprises (CPSEs) to invest their money in the public sector mutual funds and benefit from boom in the stock market.
Earlier, CPSEs were not allowed to invest funds in the stock markets or mutual funds, except in units and schemes of the Unit Trust of India (UTI).
The decision of the government allowing the CPSEs to invest in mutual funds having equity portfolio evoked sharp reaction from the Left Parties who questioned the rationale behind the move.
The decision was estimated to have paved the way for inflow of more than Rs 60,000 crore in the equity market through mutual fund route.
The decision permitting the Navratnas and Mini-Ratnas CPSEs to invest not more than 30 per cent of the available surplus funds in the SEBI-registered public sector MFs will be reviewed after three months, sources in the Finance Ministry said.
Till then, the public sector companies will be allowed to remain invested in the mutual funds managed by PSU banks, sources added.
The government last year had allowed the profit-making central public sector enterprises (CPSEs) to invest their money in the public sector mutual funds and benefit from boom in the stock market.
Earlier, CPSEs were not allowed to invest funds in the stock markets or mutual funds, except in units and schemes of the Unit Trust of India (UTI).
The decision of the government allowing the CPSEs to invest in mutual funds having equity portfolio evoked sharp reaction from the Left Parties who questioned the rationale behind the move.
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The decision was estimated to have paved the way for inflow of more than Rs 60,000 crore in the equity market through mutual fund route.
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