EPFO appoints SBI, 3 others as fund managers for Rs 3.5 lakh cr corpus
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SBI to manage Rs 3.5L cr EPFO corpus

Besides SBI and ICICI Securities, Central Board of Trustees, the decision making body of EPFO, also approved the names of Reliance Capital and HSBC Asset Management Company.

 PTI   
  • New Delhi,  July 14, 2011  
  • |  
  • UPDATED   17:17 IST

Employees' Provident Fund Organisation (EPFO) on Thursday decided to appoint four fund managers including State Bank of India (SBI) and ICICI Securities to manage its corpus of Rs 3.5 lakh crore for three years beginning September 1.

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Besides SBI and ICICI Securities, Central Board of Trustees (CBT), the decision making body of EPFO, also approved the names of Reliance Capital and HSBC Asset Management Company (AMC).

The CBT, however, dropped the name of ICICI Prudential, which was recommended by the EPFO's Financial Advisory Council (FIC) earlier in the day, sources said.

The decision to appoint fund managers for EPFO was taken by CBT, which was presided over by Labour and Employment Minister Mallikarjun Kharge.

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As many as ten companies had shown interest in managing the corpus of EPFO.

The other companies which were in the race for managing EPFO funds were Kotak Mahindra AMC, Securities Trading Corporation of India, UTI AMC, Birla Sun Life AMC and Franklin Templeton AMC.

Among those companies approved by FIC, ICICI Securities quoted the lowest rate of 3 paise per annum for managing Rs 10,000, sources said. Reliance Capital quoted a rate of 4 paise per annum for managing Rs 10,000, HSBC AMC 36 paise and SBI Re 1.

EPFO had appointed multiple fund managers for the first time in July 2008, for earning better rate of return on deposits for its 4.72 crore subscribers.

Before that, SBI was the sole fund manager for the retirement fund body since its inception in 1952.