Indian Department of Posts can now invest in stock markets

Indian Department of Posts can now invest in stock markets

The Indian government has now given permission to the department of posts to invest in the stock markets. This would now allow the Indian Postal Department to invest about Rs 10,000 crores they have in store from its life insurance schemes in the stock markets for better returns.

U Srinivasa Raghavan, secretary, DoP said in a statement on this government initiative: “The finance ministry has allowed the department to keep these funds of about Rs 10,000 crore with special deposits, saying that the department must find outside investment opportunities, including investments in stock markets.”

The government has also made it clear that special depository rates on investments in the two schemes of DoP PLI and RPLI would not be available after September 30, 2006. The Department of Post has appointed global consultant A F Fergusson to look into investment option for the schemes.

Raghavan added: “We will take any decision only after careful examination and that too adopt a strategy, which will have enough safeguards to ensure safety of investors’ funds.”