The Employees Provident fund is managed by an organisation called the Employees Provident Fund Organisation (EPFO). EPFO had appointed 4 fund managers in July 2008 for the period of 2 years. These 4 fund managers are ICICI Pru, HSBC and Reliance Capital and SBI. Their term, which was to end on September 2010 was earlier extended by six months and it comes to an end on March 2012. EPFO had began appointing new fund managers earlier this month but the process has got delayed and that is why the trustees has decided to appoint State Bank of India (SBI) as the sole fund manager for next 3 months.
The Employees’ Provident Fund Organisation is the largest provident fund institutions in the world managing over Rs 3.5 lakh crore. Appointing SBI as a sole manager as an interim measure is taken by the Central Board of Trustees as EPFO is yet to complete the process of appointing new fund managers.
The EPFO had started the process of appointing new fund managers last year after it engaged rating agency Crisil for appointing and later monitoring the performance of new fund managers. As many as 11 firms had evinced interest in managing its corpus which receives incremental deposits of about Rs 30,000 crore every year.
The EPFO ‘s Central Board of Trustees (CBT) has turned down the proposal to give three months extension to the other three fund managers – ICICI Pru, HSBC and Reliance Capital who have also been managing the corpus until now. And so it has been decided that SBI alone will manage the entire retirement fund of the 4.71 crore EPFO subscribers for the interim period of three months beginning 1st April 2012.Google+