Six fund managers, including HSBC AMC, ICICI Prudential, Reliance Capital AMC and UTI AMC, have qualified in initial bids for managing EPFO funds for a three-year term beginning April 1.
"The bids for appointment of new fund managers were opened today. Six firms have prequalified for managing the funds of retirement fund body EPFO-- HSBC AMC, ICICI Prudential, Reliance Capital AMC, ICICI Securities Primary Dealership, Birla Sun Life AMC and UTI AMC," a source said.
EPFO has a subscriber base of over five crore and receives over Rs 70,000 crore as incremental deposits every year. During the current financial year, EPFO's incremental deposits are estimated to be Rs 79,000 crore.
At present, EPFO is managing a corpus of Rs 6.5 lakh crore.
EPFO's funds at present are being managed by SBI, HSBC AMC, Reliance Capital AMC and ICICI Securities Primary Dealership. The term of these fund managers ends on March 31, 2015.
The Finance Investment and Audit Committee (FAIC) will now open the financial bids and consider technical scoring of these six firms on January 20, the source said.
The FAIC will recommend the names of the firms qualified on the basic on technical and financial bids to the EPFO's apex decision making body, the Central Board of Trustees which is headed by the Labour Minister.
The CBT is the final authority to appoint fund managers on the basis of technical and financial bids and recommendations of FAIC.
As many as eight portfolio managers had submitted bids for managing EPFO funds including SBI and Axis AMC.
The source said that Axis AMC failed to prequalify as portfolio managers. SBI has already been nominated as fund manager for a three year term beginning April 1. Therefore, it need not participate in the bidding.