A trade union representative in the EPFO has opposed its fund manager Anil Ambani group firm Reliance Capital Asset Managements decision to sell 26 per cent stake to Japanese insurance firm Nippon Life.
” We are a
gainst the entry of foreign investor in the asset management firm managing EPFO funds. This is very dangerous and against the interest of workers,” B N Rai, Secretary Bharatiya Mazdoor Sangh told PTI. The EPFO had appointed Reliance Capital as its fund manager in July last year. It manages a part of huge EPFO corpus of Rs 3 lakh crore. Under the contract with the EPFO, its fund managers, ” shall not undertake any corporate action including mergers, amalgamations, take over, acquisition, divestment etc, without the prior written approval of the Trust”. The matter came up for discussion before the EPFOs advisory body, Finance and Investment Committee ( FIC), on Friday, and faced opposition from Rai, the sole union member who was present at the meeting.
In view of the stiff opposition, the issue, which was listed on the agenda, was dropped at the recent meeting of the Central Board of Trustees ( CBT), the apex decision making body of the Employeesalt39 Provident Fund Organisation ( EPFO), at Chennai on Friday.
When the company was contacted, Reliance Capital Asset Management CEO Sundeep Sikka said ” We are not aware of issues, if any, raised by trade unions representatives, in relation to EPFO approvals,” he said.
Another EPFO trustee and unionist, A D Nagpal said: ” We will oppose the deal in the next CBT meeting”. Competition watchdog CCI had recently approved the deal, which was valued at an aggregate amount of Rs 1,450 crore and is the largest Foreign Direct Investment ( FDI) deal in any Indian asset management company till date. ( PTI) EPFO fund managers are not allowed to undertake any corporate action including mergers, take over, acquisitions without the prior approval of the trust