A high-level committee will soon be formed to propose the division of work between two consultants.
The proposal was first mooted by the finance, investment and audit committee, a senior government official told ET. “It is proposed to have two consultants, one focussing on debt side and the other on equity side and research, and for that purpose a committee is proposed to be constituted,” the official said.
“EPFO will kick-start the process of appointing consultants once the recommendations of the committee are accepted,” the official added.
A member of the central board of trustees of EPFO told ET on the condition of anonymity that appointment of two consultants instead of one has been a long pending requirement for EPFO whose portfolio has diversified over the years.
“There will be sufficient checks and balances in place under the new system while it will reduce EPFO’s dependence on a sole consultant. This is important as EPFO deals in high-value investments,” the CBT member added.The tenure of the incumbent consultant Crisil had come to an end on February 5 following which it has been given an extension till the time a new consultant is appointed and brought onboard.An Employees’ Provident Fund Organisation consultant is responsible for selection and evaluation of portfolio managers and acts as a custodian and concurrent auditor for the retirement fund body.
EPFO manages investments of over ₹18 lakh crore.