A special meeting of the Central Board
of Trustees, Employees Provident Fund was held here today to decide on the issue
of appointing a multiple fund managers to manage the provident fund monies.
The issue of multiple fund managers is under examination by the Board for
more than two years. In an earlier meeting, it was decided to appoint
a professional agency to assist the EPFO through the process of appointing multiple
fund managers. M/s. CRICIL was appointed
as a consultant. After following rigorous
scrutiny mechanism in a transparent and fair manner, the Committee of Officers
short listed 17 out of 21 applicants for inviting request for proposals (RFP).
All the parties were informed of the requirements and technical parameters. On examination of technical bid, 10 fund managers
were shortlisted for financial bid.
On opening the financial bid, two fund
managers among the shortlisted i.e. namely HDFC AMC,
Birla Sun Life AMC., made a bid of 0%. Their bids were
rejected after taking a legal advice and that zero bid
would not constitute a valid contract. The
Board selected four fund managers on the basis of financial bid. The fund managers selected and fee quoted by
them are as follows:
1. HSBC AMC
2. ICICIC Prudential AMC
3. State Bank of India 0.01%
4. Reliance Capital AMC 0.01%
It is expected that each year about
Rs.30,000 crore would be available as
incremental accretion to these fund managers. The monies be managed by them would
be in a certain proportion that would be decided later. Further they would also render custodial services
for maintaining the previous investment currently held by SBI.
(Release ID :40803)