Govt may raise FDI cap in pension sector to 74%

The government may hike the foreign direct investment (FDI) ceiling in the pension sector to 74% and a Bill in this regard is expected to be introduced in Parliament, reported Press Trust of India.

Amendments to the Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013 seeking to raise the FDI ceiling in the pension sector may be made in the monsoon session or winter session depending on various approvals, sources said.

Currently, the FDI cap in the pension funds sector is capped at 49%.

Last month, Parliament approved a Bill to increase the FDI cap in the insurance sector from 49% to 74%.

Source: Asia Insurance Review