The finance ministry on Wednesday permitted CPSEs to invest their surplus funds in debt-based schemes of private sector mutual funds, a move that will help them diversify their investment portfolio.
So far, Central Public Sector Enterprises (CPSEs) were allowed to invest their surplus fund in Sebi-regulated public sector mutual funds.
The Department of Investment and Public Asset Management (DIPAM) has issued a modified guidelines on investment of surplus funds by CPSEs wherein it said that “Maharatna, Navratna and Miniratna CPSEs are permitted to invest in debt-based schemes of Sebi regulated mutual funds”.
DIPAM said the guidelines have been modified in view of the representations received from some CPSEs, mutual funds, and private sector banks suggesting changes in certain provisions keeping in view liberalisation of policies and introduction of new monetary instruments for trade in short-term funds.
These proposals have been examined by the inter-ministerial Committee for …
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