Section 8 (d) & Section 9 of the Parliamentary Act No. 46 of 1980 empowers the Board to invest its funds. Investment objectives, Asset Allocation & other guide lines and Code of Conducts & Ethics for the staff of Investment Division approved by the Board of Directors have been stipulated in the Investment Policy.
Investment Objectives
The primary objective in the investment of Board's funds is to ensure the safety of principal, while managing liquidity to pay the financial obligations of the Board, and providing optimum investment return using authorized instruments.
Safety
The safety of capital is the foremost objective of the Board. A substantial portion of the investment portfolio will be invested in gilt-edged government securities in order to ensure safety of the capital
Liquidity
The Investment portfolio shall remain sufficiently liquid to enable the Board to meet all operating requirements that might be reasonably projected.
Return on Investment
The Investment portfolio shall be designed to obtain the highest available return, taking into account the constrains and cash flow needs. Investment Division shall seek to obtain the highest available return using authorized investment instruments.
Approved Asset Allocation
%
%
Fixed Income Investments
(a)
Gilt-edged securities
Treasury Bills/Treasury Bonds/Rupee Loans
88
(b)
Other Fixed income securities (maximum)
( subject to conditions )
05
(c)
Short term Repos
02
95.0
Equities (Maximum) - Shares & Units (subject to conditions)
