Controversy Surrounding Adani Group Stocks Raises Questions over EPFO’s Investment Strategy

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National, 27th March 2023: Indian EPFO subscribers are said to be captive investors of two Adani Group stocks, according to recent reports. The reports suggest that there are no alternative options available for the subscribers, as the stocks in question are part of the Nifty 50 and Sensex indices that are tracked by EPFO-managed funds. The issue raises concerns over the lack of investment choices available for EPFO subscribers and the transparency and accountability of investment decisions made by EPFO-managed funds.

 

EPFO is a major social security organization with over 60 million subscribers and a corpus of around INR 13 lakh crore. As part of its investment strategy, EPFO invests in the Nifty 50 and Sensex indices, which are considered benchmarks of the Indian stock market. However, the inclusion of Adani Ports and Special Economic Zone (APSEZ) and Adani Enterprises in these indices reportedly forces EPFO subscribers to invest in these stocks without alternative investment options.

 

The development has prompted experts to call for greater transparency and accountability in the investment decisions made by EPFO-managed funds, as well as for the consideration of more socially responsible investments. Some have suggested that diversifying the investment portfolio could also yield better returns in the long term.

 

The situation has raised concerns among EPFO subscribers who may not wish to invest in Adani group stocks for various reasons, including environmental and social controversies surrounding the group. As of now, the lack of alternative investment options means that EPFO subscribers have no choice but to invest in these stocks, leading to questions over the transparency and accountability of EPFO-managed funds.