EPF exempted establishment can now invest in rupee bond of New Development Bank

The Employees' Provident Fund Organisation (EPFO) has expanded its investment options for its subscribers. The government has now permitted exempted establishments to invest in the rupee bonds of the New Development Bank (NDB), alongside bonds from the World Bank and Asian Development Bank. This move allows the retirement fund to diversify its portfolio further by including instruments from this multilateral development bank.
This development is significant for investors as it offers a new avenue for the EPFO to park its corpus. By including NDB bonds, the fund can potentially earn better risk-adjusted returns and spread its investments across different geographies and issuers. For the broader market, this policy change is expected to improve the liquidity and depth of the bond market for foreign issuers operating in India.
Excerpt from BusinessLine
The government on Thursday included specified bond of the New Development Bank for investment by exempted entities under Employees Provident Fund Organisation (EPFO). According to a notification by the Labour Ministry, under the ‘Debt Instruments and Related Investments’ category, rupee bonds having an outstanding…Read the original at BusinessLine
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