The Employee's Provident Fund Organisation (EPFO) has approved Reliance Capital Asset Management Ltd.'s plan to sell a 26% stake to Nippon Life Insurance Company, Japan. It also cleared the proposed change in ownership structure.

The Competition Commission of India, SEBI, Reserve Bank of India (RBI) and Pension Fund Regulatory & Development Authority (PFRDA) among others have already approved the deal, which was valued at around Rs 14.5bn.

The Central Board of Trustee's (CBT) also allowed EPFO to park its funds in fixed deposits upto five years, short term securities and certificate of deposits of public sector banks.

The EPFO would be allowed to participate in collateral borrowing lending obligation (CBLO), approved by the the Reserve Bank of India (RBI).

"What has been agreed, which again will be recommended to the Government and it has to take a view, is that the borrowing in the CBLO is to be permitted, the investment in the CDs of the public sector banks also is to be permitted and and the investment in FDs for more the one year and less than five years is also be permitted," Central Provident Fund Commissioner R.C. Mishra told reporters.

The EPFO has a corpus of Rs 3.5 lakh crore.

The 200th Meeting of the Central Board of Trustees, Employees Provident Fund Organisation (EPF0), which was the fourteenth regular meeting of the present Board, was convened on Tuesday under the chairmanship of Union Labour & Employment Minister Mallikarjun Kharge.

Speaking on the occasion, the minister emphasized the need to increase the scope of investments. He also informed the members of the e-pass book facility launched by the EPFO.

The Board deliberated upon the confirmation of the final minutes of the 199th meeting of CBT, EPF held on May 25 this year.

In addition, a proposal for expanding investment opportunity to increase the earnings of the fund was also deliberated upon.

The proposal for classification of investment in Private Institutions notified as Public Financial Institutions (PFIs) under 30% category of Pattern of Investment in PSU/PFIs by EPFO came up for discussion as well.