PFRDA has set up panel experts
With new instruments like real estate and infrastructure investment trusts coming up, the Pension Fund Regulatory and Development Authority (PFRDA) has set up a panel of experts, headed by former Sebi chief GN Bajpai, to review investment norms for National Pension System (NPS) schemes for the private sector.
PFRDA chairman RV Verma said that the regulator might soon allow pension funds to invest in Real Estate Investment Trusts and Infrastructure Investment Trusts as part of their equity exposure. According to the terms of reference of the new panel, it will review the current investment guidelines and recommend changes and new schemes. It will also consider ‘different’ types of instruments and assets under equity, corporate bonds and government bond schemes based on domestic and international experience.
The panel will recommend suitable measures for risk management, asset-liability management, ways of moving to dynamic market-based allocation of funds and choice of fund managers. In his Budget speech in July, finance minister Arun Jaitley announced plans to deepen the capital market and channel long-term funds like pension fund in infrastructure through REITs and InvITs. A month later, Securities and Exchange Board of India issued final guidelines for REITs and InvITs to list on the bourses.
Source: The Financial Express
Arun Jaitley, asset-liability management, GN Bajpai, InvITs, National Pension System, NPS schemes, Pension Fund Regulatory and Development Authority, PFRDA, Real Estate Investment Trusts, REITS, Risk management, SEBI, Securities and Exchange Board of India
