Finance Ministry Notification-Pattern of Investment to be followed by Non‐Government Provident, Superannuation & Gratuity Funds

Finance Ministry Notification F. No. 5 (88)/2006 –PR. Dated 14^th August 2008

The pattern of investment to be followed by Non‐Government Provident Funds, Superannuation Funds and Gratuity Funds is as follows:‐

 

	INVESTMENT PATTERN	% to be invested
(i)	(a) Government securities	Up to 55
	(b) Other securities the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government or any State Government except those covered under (ii) (a) below.
	(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 exposure to a mutual fund shall not be more than 5% of the total portfolio at any point of time.
(ii)	(a) Debt securities with maturity of not less than three years tenure issued by Bodies Corporate including banks and public financial institutions;	Up to 40
	Provided that at least 75% of the investment in this category is made in instruments having an investment grade rating from at least one credit rating agency.
	(b) Term Deposit Receipts of not less than one year duration issued by scheduled commercial banks.
	Provided that the scheduled commercial banks must meet conditions of
	(i) continuous profitability for immediately preceding three years;
	(ii) maintaining a minimum Capital to Risk Weighted Assets Ratio of 9%;
	(iii) having net non‐performing assets of not more than 2% of the net advances;
	(iv) having a minimum net worth of not less than Rs. 200 Crores.
	(c) Rupee Bonds having an outstanding maturity of at least 3 years issued by institutions of the International Bank for Reconstruction and Development, International Finance Corporation and the Asian Development Bank.
(iii)	Money market instruments including units of money market mutual funds.	Up to 5
(iv)	Shares of companies on which derivatives are available in Bombay Stock Exchange or National Stock Exchange or equity linked schemes of mutual funds regulated by the Securities and Exchange Board of India.	Up to 15