large scale image
LCP Image

Back to TSCFM News

ESIC to invest surplus funds in stock market through ETFs

December 05, 2022

ESIC to invest surplus funds in stock market through ETFs
Government’s social security body Employees’ State Insurance Corporation (ESIC) on Sunday approved a proposal to invest its surplus funds in the stock market through exchange traded funds (ETFs).

The decision was taken in the 189th meeting of ESIC held on Sunday at ESIC headquarters under the chairmanship of Union labour minister Bhupender Yadav, a labour ministry statement said.

Due to relatively low returns on investments in various debt instruments coupled with the need to diversify investment, ESIC gave its approval for investments of surplus funds in equities restricted to ETFs.

The investment will start with 5 per cent of surplus funds and will increase up to 15 per cent, based on the review of the investment after two quarters, it stated. The investment will be confined to Exchanged Traded Funds on Nifty and Sensex. It will be managed by fund managers of asset management companies (AMSs), the statement said.

Equity investments will be monitored by the existing custodian, external concurrent auditor and consultant looking after the debt investments, it said.

Acknowledging the increase in the number of insured workers and their dependents coming under the ambit of ESI Scheme, Yadav directed ESIC to focus on strengthening the infrastructure.

Important Links:

Recommended for you ...

Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services
Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services

February 12, 2024

Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices
Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices

February 12, 2024

Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices
Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices

February 12, 2024

Enquire Now
REQUEST A CALLBACK
Chat on WhatsApp