Staff Provident Funds investment by PLC in Pakistan
I want to share my view point that many faced lost of their PF profit due to when a PUBLIC LTD CO investment made to a wrong company or when stock market crash.
Same type of problem beings faced by many salaried persons when stock market crash in 2008 that year a Public Ltd Company refuse to pay any profit on staff PF holding claiming they earned losses instead of profit that reasons they canít pay a single Rupee to anyone.
I must ask a question from those who are experts can guide what is the maximum limit of a Public Ltd Company to invest in stock ( on behalf of staff PF accounts ) and balance PF should invest in Government securities or DSC WHICH give maximum profit to protect the interest of own company staff. I have information that 40% should be in stock and remaining 60% in Government Securities.
Suppose when a company claiming that no profit realized due to stock market crash in 2008 than why you put majority of amount in stock which move violet and no doubt one can earn but he has fear to loss something too. What is the maximum limit for investment in STOCK market from the staff Provident Funds. If any company violate and do not follow the by-laws if any losses than who is responsible than why innocent staff suffers.
Monthly basis staff only contribute PF share from their salary and same amount his own company contributed and later this larger amount always investment for getting maximum profit in order to protect the interest of staff.
Due to trustee negligence or lack of information regarding investment of Staff Provident Funds and later stage faces losses than who is responsible and staff have right to claim for getting profit from the company when such situation occurs
Request to SECP make a good practice by asking every Public Ltd Company what return they earned and how it distributed among staff. If suppose any losses declare than questioned and asked reason? Such way protect the staff Provident Funds investment
Suppose any affected who face such situation than inform who to address to remove his grievance and yet do not approach any one higher authority due to lack of information.