Oil bonds knock on EPFO door
JAYANTA ROY CHOWDHURY & R. SURYAMURTHY
New Delhi, Jan. 27: The government plans to allow the Employees Provident Fund Organisation (EPFO) and other pension funds to invest in oil and food bonds, with the aim of giving them new instruments to shore up declining earnings.
This move, analysts said, will also help to perk up the bond market in the country. However, an EPFO board member expressed doubts about the move.
Senior finance ministry officials said the procedural hurdles that prevented the entities from investing in oil and food bonds issued to state-run oil marketing companies and the Food Corporation of India (FCI) were being removed.
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