Investment pattern for provident fund moneys mandates diversified allocations and quality constraints across fixed income, equity, and asset backed categories. Prescribes a structured investment pattern for provident fund moneys from 1 April 2016, allocating assets across government securities, debt and infrastructure-related instruments, short-term money market instruments, equities, and asset-backed/trust instruments with prescribed minimums, maximums and sub-category ceilings. Specifies instrument eligibility and quality standards including listing, residual maturity, market capitalisation, issuer financial conditions and minimum credit ratings (generally AA or equivalent), permits use of credit default swaps to cover default risk in limited cases, caps turnover ratio, and requires exit when ratings fall below investment grade.
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Investment pattern for provident fund moneys mandates diversified allocations and quality constraints across fixed income, equity, and asset backed categories.
Prescribes a structured investment pattern for provident fund moneys from 1 April 2016, allocating assets across government securities, debt and infrastructure-related instruments, short-term money market instruments, equities, and asset-backed/trust instruments with prescribed minimums, maximums and sub-category ceilings. Specifies instrument eligibility and quality standards including listing, residual maturity, market capitalisation, issuer financial conditions and minimum credit ratings (generally AA or equivalent), permits use of credit default swaps to cover default risk in limited cases, caps turnover ratio, and requires exit when ratings fall below investment grade.
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