Trade union representative in EPFO opposes Reliance AMC stake sale

Press Trust Of India / New Delhi May 28, 2012, 00:59 IST

A trade union representative in the Employees Provident Fund Organisation (EPFO) has opposed the decision of its fund manager Reliance Capital Asset Management, a Anil Ambani group firm, to sell 26 per cent stake to Japanese insurance firm Nippon Life.
“We are against the entry of foreign investors in the asset management firm managing EPFO funds. This is against the interest of workers,” B N Rai, secretary, Bharatiya Mazdoor Sangh, said.

Under the contract with EPFO, its fund managers, “shall not undertake any corporate action including mergers, amalgamations, take over, acquisition, divestment, etc, without prior written approval of the trust”. The matter came up for discussion before EPFO’s advisory body, Finance and Investment Committee, on Friday, and faced opposition from Rai, the sole union member present at the meeting.
In view of the stiff opposition, the issue, which was listed on the agenda, was dropped at the recent meeting of the Central Board of Trustees (CBT), the apex decision-making body of the EPFO, in Chennai on Friday.
Reliance Capital Asset Management CEO Sundeep Sikka said: “We are not aware of issues, if any, raised by trade union representatives, in relation to EPFO approvals.” He said Reliance Capital AMC had announced a 26 per cent equity stake sale to Nippon Life “subject to various regulatory approvals already been applied for”. Approval from the Competition Commission of India had already been received, he added.