EPFO seeks CVC nod on tender for fund managers'' appointment

Written by: Pti
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New Delhi Feb 27 (PTI) Amid series of scams rocking thecountry, an extra cautious EPFO has send the tender documentfor appointment of funds managers to the Central VigilanceCommission (CVC) for vetting.

The Employees Provident Fund Organisation (EPFO), whichmanages over Rs 3 lakh crore of retirement fund, will for thefirst time seek CVC''s approval before floating bids forselecting fund managers for three years period beginning April2011, sources said.

The EPFO, according to sources, is being extra cautiousin view of the discrepancies discovered in tendering processof state-owned organisations.

Earlier, the EPFO in 2008 had appointed fund managersthrough the same process without obtaining any clearance fromthe CVC. It had appointed ICICI Pru, HSBC, Reliance Capitaland SBI in July 2008 and their tenure will end in March thisyear.

The EPFO has already initiated the process for theappointment of the fund managers. As many as 11 assetmanagement companies, including HSBC, UTI and ICICISecurities, have evinced interest in managing EPFO funds forthree years beginning April.

Besides, existing fund managers, seven new firms,including Kotak Securities, Securities Trading Corporation ofIndia, UTI Securities and ICICI Securities, have sent theirexpression of interest (EOI), a source said.

Once the CVC approves the tender document, theshortlisted asset management companies would be given about 10days time to submit their bids.

The list of qualified bidders would be placed before theEPFO''s apex policy making body Central Board of Trustees fortaking the final approval.

The decision of the CBT headed by the Labour Minister onappointment of fund managers would be final.

The EPFO trustees are likely to meet in the second halfof the next month when this matter would be placed beforethem.

Prior to the appointment of fund mangers in 2008, SBIwas the sole fund manager for the EPFO.

EPFO has engaged credit rating agency CRISIL forappointment of the fund managers as well as monitoring theirperformance for the next three fiscals on quarterly basis. PTIKKS CS

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