Dear Vaibhav,
The nomenclature of the compensation eventhough called as ' stipend ' given to a person undergoing some sort of training in the organization is not suffice to determine the PF and ESI coverage of such a person. He should have been engaged as such under a contract of apprenticeship either under the Apprentices Act,1961 or under the Certified Standing Orders of the establishment and not employed under a contract of employment.
In the case of such Apprentices ESI is applicable though they are paid stipend and PF is not applicable as they are not paid any salary or wage.