The Employees' Provident Fund Organisation (EPFO) is addressing its growing exposure to downgraded corporate debt by developing a formal exit policy for its investment portfolio, which exceeds ₹30 trillion (approximately $360 billion USD). As of December 2025, about 18.9% of EPFO's investments fall under Category II, which includes corporate bonds, with at least 17 downgraded securities currently in its portfolio. The proposed exit strategy aims to establish a clear framework for managing credit downgrades, including guidelines on when to sell such investments and how to evaluate the performance of portfolio managers responsible for these decisions. Previous investment decisions, such as those involving Reliance Capital, were made on an ad-hoc basis, depending on market conditions. The Investment Committee (IC) of EPFO has discussed the need for a structured approach and is reviewing practices from other pension funds. The exit policy is still under discussion and is expected to be presented to the Central Board of Trustees (CBT) in upcoming meetings, with the next IC meeting scheduled for May.