Provident fund bond investment of Rs 11,000 crore at risk

-


AHMEDABAD: The Employees Provident Fund Organization (EPFO), which has an estimated 2.5 crore members, is questioning its investment in bonds of various companies worth Rs 11,000 crore. This is an investment in which the invested companies have defaulted and no interest or principal is paid. The organization invests the amount of salary savings and interest on it at the time of retirement of the employees in different sectors and pays back accordingly. If this amount is not returned, EPFO's funds could be hit hard.

No principal or interest is being paid on the bonds of IL&FS, Reliance Capital with the outstanding amount being Rs 3 crore. In addition, the credit ratings of bonds invested by Indiabulls Housing, IDFC First Bank and Yes Bank have been weakened.

EPFO's total investment in Diwan Housing was Rs. As on September 30, Rs. 313.04 crore against principal and Rs. 190.2 crore of interest have not been recovered. Dewan Housing's bankruptcy proceedings have been completed and Rs 3.5 crore in cash and Rs 2.5 crore in securities have been recovered.

Although there is no default in Yes Bank or IDFace First Bank, their credit rating has been weakened, raising concerns among EPFO ​​investors. EPFO has bonds of Yes Bank, IDFC First Bank and India Bulls Housing Finance.

In addition, EPFO ​​has an investment of Rs 3.5 crore in IL&FS and is in the process of being resolved. The company has defaulted on the principal and interest amounting to Rs 2.17 crore payable to EPFO.

Consideration to file a criminal case against Reliance Capital

The EPFO ​​bought Reliance Capital's bonds worth Rs 4,500 crore, the largest share of the total dubious bond investments. The organization owes Rs 5 crore in principal and interest to the company. A meeting of the Central Trustees will be held on the 30th to consider a criminal case against Reliance Capital. The organization has also asked the Ministry of Labor, Reserve Bank, SEBI and the stock exchange to initiate bankruptcy proceedings against Reliance Capital due to arrears.

Comments

Post a Comment

Popular posts from this blog

Due to the ban, employment and economic activity declined by two to three percent

-
Image
New delhi date. October 7, 2019, Monday A new study has found that employment and economic activity have declined by two to three percent due to the ban. A similar situation has been observed in bank lending. The study found the decline to occur within two months of the notation announced on November 7. This is the first research on demineralization in which data on the effects of districts across India were collected. In addition to the districts, the effect of national level was also studied. Previous studies only examined the national level effect of demonitization. Thus, a full estimate of the overall effect is not known. As a result of the shortage of cash arising out of the blockade, the country's economic activity fell by approximately 8 percent in November-December 2 In the October-December period, bank credit has seen an impact of around two per cent. Cash pulls have impacted demand for a short period. The study found that there was a strong link between money and pro...
Read more

Information about soymilk and casein products

-
Image
- Industrial guidance - Dhiru Parekh Soymilk: Soybeans are converted to high-quality protein. So that high quality drinks can be made which can be easily digested. There is no difference between soymilk and cow's milk. So the conservative industries of milk processing are now using this milk to make yogurt and ice cream. Consumers also cannot tell the difference between ice cream made from cow's milk and from soy milk. Also, the production capacity of soy milk can be increased than that of cow's milk. And the price can be cheaper. Soybeans mainly contain two types of enzymes that are inactivated in the soymilk process. Leukoxidase that catalyzes the oxidation of fatty acids. And enzymes like pepsin, trypepsin are included in it. Which helps in digesting protein. Soyamilk powder manufacturing process: This is an electric pre-heater system. which basically allows fluid to flow easily in a stationless tube under low-voltages. which absorbs the energy flowing through the Ja...
Read more

The brokerage firm objected to SEBI's new proposal regarding Algo Trading

-
Image
MUMBAI: Brokerage firms and fintech companies have objected to market regulator SEBI's discussion paper considering all stock trading orders issued through Application Programming Interface (API) as separate trading, saying it could adversely affect the growth of such trading from India. Algo trading is considered to be an automatic buying-selling system based on algorithms. SEBI has recently said in a discussion paper that it would create a framework for regulating Algo trading by retail investors. A senior official of a brokerage firm said that monitoring of Algo trading is a need of the hour, but such an attempt could hamper the growth of Sebi Algo trading. He added that if the suggestions made in the SEBI discussion paper were implemented, it would be difficult for brokers to make the API available. About 70% of the daily trading volume in Indian stock markets is transacted through advanced forms of algo trading. Algo Trading came to India in the year 2006, but then only se...
Read more