Investment Pattern and Fund Management Guidelines for Exempted Provident Fund Trusts (2015 Notification)

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....hment and that the said Board of Trustee shall invest every month with in a period of two weeks from the date of receipt of the said contributions from the employee, the provident fund accumulations in respect of the establishment or as the case may be, of the employee, or class of employee that is to say, the contributions and interest as reduced by any obligatory outgoings in accordance with the following pattern, namely:- Category No. Category/Sub-Category Percentage amount to be invested (i) Government Securities and Related investments (a) Government securities, (b) Other securities (as defined in Section 2 (h) of the Securities Contract (Regulations) Act, 1956) the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government or any State Government The portfolio invested under this sub-category of securities shall not be in excess of 10% of the total portfolio of the fund. (c) units of mutual funds set up as dedicated funds for investment in Government securities and regulated by the Securities and Exchange Board of India: Provided that the portfolio invested in such mutual....

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.... by Securities and Exchange Board of India Provided that fresh investment in Debt mutual Funds shall not be more than 5% of the accretions invested in the year and the portfolio invested in them shall not exceed 5% of the total portfolio of the fund at any point in time. (f) The following infrastructure related debt instruments: (i) Listed (or proposed to be listed in case of fresh issue) debt securities issued by body corporate engaged mainly in the business of development or operation of infrastructure or construction/finance of low coast housing. Further this category shall also include securities issued by Indian Railways or any of the body corporate in which it has majority shareholding. This category shall also include securities issued by any Authority of the Government which is not a body corporate and has been formed solely with the purpose of promoting development of infrastructure. It is further clarified that any structural obligation undertaken or letter of comfort issued by the Central Government, a State Government, Department of Railways or any Authority of Government, for any security issued by a body corporate ....

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....of AA or above by a domestic or international rating agency will be acceptable. It is clarified that debt securities covered under category (i) (b) above are excluded from this category (ii). Minimum 35% and Up to 45% (iii) Short-term Debt Instruments and Related Investments (a) Money market instruments Provided that investment in commercial paper issued by body corporate shall be made only in such instruments which have minimum rating of A1+ by at least two credit rating agencies registered with Securities and Exchange Board of India. Provided further that if commercial paper has been rated by more than two rating agencies, the two lowest of the ratings shall be considered. Provided further that investment in this sub-category in Certificates of Deposit of up to one year duration issued by scheduled commercial Banks, will require the bank to satisfy all conditions mentioned in category (ii) (d) above. (b) Units of liquid mutual funds regulated by Securities and Exchange Board of India. (c) Term Deposit Receipts of up to one year duration issues by such scheduled commercial banks which satisfy all conditions me....

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.... in the applicable rating scale from at least two credit rating agencies registered by Securities and Exchange Board of India under Securities and Exchange Board of India (Credit Rating Agency) Regulation, 1999. Provided further that in case of sub categories (b) and (d) the ratings shall relate to the rating of the sponsor entity floating the trust. Provided further that if the securities/entities have been rated by more than two rating agencies, the two lowest of the rating shall be considered. Up to 5% 2. Fresh accretions to the fund will be invested in the permissible categories specified in this investment pattern in a manner consistent with the above specified maximum permissible percentage amounts to be invested in each such investment category, while also complying with such other restrictions as made applicable for various sub-categories of the permissible investments. 3. Fresh accretions to the funds shall be the sum of un-invested funds from the past, receipts like contributions to the funds, dividend/interest/commission, maturity amounts of earlier investments etc., as reduced by obligatory outgo during the financial year. 4. Proceeds arisi....