New
Delhi: In its draft regulation on registration of
intermediaries released on Friday, the interim Pension
Fund Regulatory and Development Authority (PFRDA) has
proposed restrictions on investments of pension accumulations
handled by pension fund managers (PFMs). The PFRDA has
said that PFMs would be allowed to invest only in a handful
of instruments, all of them domestic.
These
include equities of companies listed in India and regulated
by SEBI, publicly traded securities issued by the central
government, traded Indian corporate debt instruments that
have been rated as investment grade by at least two rating
agencies and loans of Indian micro-finance institutions
guaranteed by the RBI.
The
permitted equities would have to be part of an index approved
by the PFRDA.
The draft regulations has been issued to conform to the
wishes of the
parliamentary standing committee on finance that had suggested
that the broad contours of the regulations governing the
implementation of the 'new pension system' should be first
put in the public domain prior to the enactment of the
PFRDA Bill.
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