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Pension regulator PFRDA has set up an expert committee under chairmanship of former SEBI chief G N Bajpai to review the investment guidelines for national pension system (NPS) schemes in private sector.
This committee will look at the investment guidelines in a “wholesale” manner so as to enable flow of pension monies in new instruments such as long term infrastructure bonds to be floated by banks, infrastructure debt funds and Basel 3 compliant bonds.
The review of investment guidelines will also help revamp the role of pension fund managers (PFMs) and could allow them to proactively promote pension products, R.V.Verma, PFRDA Chairman, told Business Line here on Thursday.
Current regulations forbid PFMs from marketing of pension products, Verma pointed out.
Besides review of investment guidelines for NPS in private sector, the committee has also been asked to recommend measures for bringing other pension/superannuation funds under the regulatory purview of PFRDA.
The expert committee will have to submit their recommendations within six weeks.
The committee will among other things also consider moving to dynamic market-based allocation of funds/choice of fund managers.
This could enhance the corpus of funds (assets under management) for PFMs.
The members of the expert committee include Deepak Satwalekar, former CEO and Managing Director at HDFC Standard Life Insurance Company, S B Mathur, former LIC Chairman, C R Murlidharan, former IRDA Member and Madhavi Das, Executive Director, PFRDA.
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