EPFO's advisory body FIC on Thursday shortlisted five entities --ICICI Securities, Reliance Capital, HSBC Asset Management Company, SBI and ICICI Prudential -- for managing its corpus of Rs 3.5 lakh crore (Rs 3.5 trillion).
The recommendation of the EPFO's Financial Advisory Committee will be placed before the Central Board of Trustees for final approval later in the day, sources said.
The suggestions of the FIC is usually accepted by the Employees Provident Fund Organisation's highest decision making body CBT which is headed by the labour minister.
As many as ten companies had shown interest in managing the corpus of the EPFO.
While clearing five names, the FIC rejected the bids of Kotak Mahindra AMC, Securities Trading Corporation of India, UTI AMC, Birla Sun Life AMC and Franklin Templeton AMC.
Among those companies approved by the FIC, ICICI Securities quoted the lowest rate of 3 paise per annum for managing Rs 10,000, sources said.
Reliance Capital quoted a rate of 4 paise per annum for managing Rs 10,000, HSBC AMC 36 paise, ICICI-Prudential 96 paise and SBI Re 1.
The EPFO had appointed multiple fund managers for the first time in July, 2008 for earning better rate of return on deposits for its 4.72 crore subscribers.
Before that, SBI was the sole fund manager for the retirement fund body since its inception in 1952.