Labour Secretary Sahnkar Agarwal said on Friday that even though the investment limit is not as high as the limit which was recommended by the Finance Ministry, but from now EPFO will be allowed to invest 5% of its incremental income in Exchange Traded Funds (ETFs). It's noteworthy however that the limit recommended by the Finance Ministry was 5% to 15%, and the new limit is at the lower end of the range recommended. Mr. Agarwal added that even though the limit recommended was significantly higher, since it's their first time foraying into stock markets, they are being cautious.

As a result of this decision, the stock markets could see an inflow of over Rs.5000 crores by the end of this fiscal year.