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Journalism of Courage
State Bank of India, ICICI Securities and Reliance Capital Asset Management have been selected to manage the provident fund corpus of the workers of coal industry, amounting to around Rs 75,000 crore. The Coal Mines Provident Fund Organisation (CMPFO) gave the mandate to the three fund managers and allotted equal corpus to the three of them.
On Tuesday CMPFO communicated its decision to the selected fund managers and gave the mandate for fund management for a period of three years beginning November 1, 2015.
The decision follows the selection process where CMPFO had invited two rounds of bids from fund management companies and four institutions — SBI, UTI, ICICI and RCAM — participated in financial bid after they cleared the technical round.
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While the corpus was earlier managed by SBI at a fund management fee of 0.01 bps that amounted to close to Rs 7.5 crore, RCAM and ICICI emerged as the lowest bidders with a bid of 0.0009 bps. The new management fee for the entire corpus would amount to Rs 0.67 crore that would amount to annual savings of Rs 6.8 crore for CMPFO.
