EPFO to nominate new associate businesses, change custodian after 15 years – Market Evaluation & Knowledge

The Staff’ Provident Fund Organisation (EPFO) is within the strategy of appointing new associate businesses because the retirement fund supervisor appears to empanel a brand new custodian after almost 15 years, in accordance with sources conscious of the event.

Presently, Customary Chartered Financial institution is the custodian of the EPFO, working because the company that holds and safeguards the social safety organisation’s ₹31 trillion corpus. It was appointed in November 2011, and the plan to nominate a brand new custodian has been hanging fireplace for almost 5 years. After revoking the number of Citibank in 2023, the EPFO’s funding committee (IC) made a name in 2024 to not concurrently run the method of appointing a brand new custodian in addition to new portfolio managers, stated the sources. 

In October final 12 months, the EPFO authorised the appointment of HDFC Asset Administration Firm and Aditya Birla Solar Life AMC, together with the reappointment of its current portfolio managers – SBI Fund Administration and UTI Asset Administration Firm. 

Following this, the IC determined to situation a request for proposal (RFP) or a proper tender, inviting bids from eligible firms. On the similar time, the committee can also be finalising an RFP for the appointment of its exterior concurrent auditor (ECA), which audits the funding exercise of the EPFO. 

The tenure of Choksi & Choksi LLP as ECA, which expired on January 31, has been prolonged till December 31 this 12 months, until a brand new ECA is appointed earlier than that. For the appointment course of, the committee determined that the draft RFP be vetted by an professional company to make sure regulatory compliance and compatibility with finest market practices. 

An e-mail despatched to the EPFO didn’t elicit a response until press time. 

As on December 31, 2025, the EPFO’s debt investments constituted over 89 per cent of its total portfolio, whereas its fairness investments accounted for 10.57 per cent. The portfolio managers of the EPFO deal with its debt investments, whereas the asset administration firms (AMCs) handle its fairness investments. 

The tenure of the presently appointed AMCs — ICICI Prudential Asset Administration Firm, SBI Funds Administration, Nippon Life India Asset Administration, and UTI Asset Administration Firm — can also be set to finish on July 2. The EPFO has initiated the method to nominate new AMCs. 

Other than portfolio managers, the custodian, AMCs, and the ECA, the EPFO has another exterior associate company — its guide. The Central Board of Trustees had appointed Crisil as guide for the number of portfolio managers, the custodian, and the ECA, and for efficiency analysis of portfolio managers, in August 2014. Crisil’s time period was prolonged in February final 12 months for 3 years.