The Central Board of Trustees (CBT) of the EPFO (Employees' Provident Fund Organisation) on Tuesday has approved the proposal of Reliance Capital Asset Management (RCAML) to sell 26% stake to Japanese insurer Nippon Life. The deal is worth around Rs. 14.5 billion.
Reliance Capital is one of the four fund managers of the EPFO managing 20% of its corpus. The approval was needed because according to the contract with the EPFO, its fund managers cannot do mergers, acquisitions etc without the approval of the Trust.
CBT is the highest decision making body of the Employees' Provident Fund Organisation's (EPFO) and is headed by the Labour Minister.
Competition Commission of India, SEBI (Securities and Exchange Board of India), Reserve Bank of India and Pension Fund Regulatory and Development Authority among others have already approved the deal.