New Delhi, Nov 20 (UNI) Upstream major Oil and Natural Gas Corporation (ONGC) today said it will get the board's approval by December-end for investing a substantial part of its surplus cash of Rs 19,000 crore in mutual funds (MFs) to increase its revenue.
''We will put in a substantial amount of our surplus income of Rs 19,000 crore in the MFs, and hope to get the board's approval within a month's time,'' ONGC Chairman and Managing Director told reporters here on the sidelines of a national workshop on 'Strategy for Investment of Surplus Funds by CPSEs in Mutual Funds.'' The Government recently allowed PSEs (Navratna and Miniratna) to make equity-related investments of up to 30 per cent of their surplus cash in public sector SEBI regulated mutual funds after putting in place requisite guidelines, procedures and control systems in consultation with their administrative ministries.
However, Mr Sharma said the flagship oil explorer will not only infuse the money into the equity, but also into the debt segment.
At present, the PSEs have a surplus cash of over Rs 3,00,000 crore.
''With a surplus of over Rs 3,00,000 crore, the public sector enterprises have a huge reserve at their disposal that can be invested judiciously to reap handsome returns,'' IndianOil Chairman Sarthak Behuria said.
Speaking on the occasion, UTI Asset Management Company Pvt Ltd Chairman and Managing Director U K Sinha said there is no harm in investing in small parts of pension fund into the MFs.
He added that such practices of investing pension fund into the MFs is common in countries such as China and Malaysia.
''Let us not fear to deposit in the MF, rather investing in the MF is a very good idea,'' Mr Sinha said.