ESIC to invest surplus funds in stock market

Labour and Employment ministry-backed Employees’ State Insurance Corporation (ESIC) accorded approval for investments of surplus funds in equity, however, restricted to Exchanged Traded Funds (ETFs). Union Labour Minister Bhupender Yadav said, ESIC to upgrade and modernize its infrastructure under the ‘Nirman Se Shakti’ initiative.

The announcement was made in the 189th meeting of ESIC held under the chairmanship of the labour union minister.

In the meeting, ESIC accorded approval for investments of surplus funds in equity, restricted to ETFs due to the relatively low returns on debt instruments coupled with the need to diversify.

As per the PIB statement, the initial investment shall start at 5% and increase up to 15% gradually, after a review of two quarters.