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Centre of India trade unions has questioned the role of finance Ministry for diverting the PF/Pension funds to private sector mutual fund. The Finance ministry while notifying the pattern of investment of Provident Fund and Pension Fund contributions, effective from 1.4.1999 has provided for (i) 10% investment in private sector bonds/securities and (ii) investment in units of private sector Mutual Funds which have been set up as dedicated funds for investment in government securities. (40% of PF and Pension funds must be invested in the Central and state government securities and this can go up to 60% even).

Deploring the Finance Ministry deciding such policy matters bypassing the CBT, W. R. Varada Rajan, secretary, CITU and member, CBT, had urged the Labour Secretary to take up the matter with the government. The Labour ministry has also been advised not to act on the notification.