The Ministry of Finance vide Financial Services No. 1/8/2021-PM notified the amendment of Investment guidelines for the Non-Government Provident Funds on 24th August 2023.
In the official communication from the Government of India, Ministry of Finance, Department of Financial Services, referenced as No. 11/14/2013-PR and dated March 2, 2015, as published in the Gazette of India, Extraordinary, Part I, Section 1 on the same date, the Central Government is now introducing the subsequent modification.
According to the notification “In Para 4 of the said notification, the following words shall be inserted –‘sale/ redemption of investment in equities and related investments,’ after the words ‘Proceeds arising out of” and before the words ‘exercise of put option’.”
According to the Principal Notification Para 4 states that “Proceeds arising out of exercise of put option, tenure or asset switch or trade of any asset before maturity can be invested in any of the permissible categories described above in the manner that at any given point of time the percentage of assets under that category should not exceed the maximum limit prescribed for that category and also should not exceed the maximum limit prescribed for the sub-categories, if any. However, asset switch because of any RBI mandated Government debt switch would not be covered under this restriction.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
