PFRDA Doubles Minimum Net Worth for Pension Fund Managers to Rs 50 cr

PFRDA Doubles Minimum Net Worth for Pension Fund Managers to Rs 50 cr

• The Pension Fund Regulatory and Development Authority (PFRDA), the regulator of the National Pension System (NPS), has made certain amendments in the pension guidelines. These are as follows.
• Minimum Net Worth: The regulator has doubled the minimum net worth requirement for pension fund managers to Rs 50 crore from the Rs 25 crore stipulated earlier.
• Validity of License: Provision has also been made for licenses to have indefinite validity. Earlier, the licenses of pension fund managers was granted for a period of five years. But now, the license will remain valid until cancelled by the regulator.
• Equity Acquisition: A pension fund or its sponsor cannot acquire equity stake in another pension fund. Existing pension funds who have such cross holdings can continue with the same but cannot increase them without the permission of the regulator.