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.