Pension fund regulator injects clarity about NPS fund managers

The Pension Fund Regulatory and Development Authority of India (PFRDA) has clarified the eligibility criteria of fund managers of the National Pension Scheme (NPS).

A PFRDA notification published on 25 May states that sponsors are to have a minimum positive tangible net worth of INR500m ($6.8m), of which at least INR250m should be the paid-up equity capital on the date of making the application as a sponsor, reported Telegraph India.

Previously, the sponsor was only required to comply with the net worth criteria of at least INR500m. Of this, at least half should have been capital. This rule is now amended to provide that the capital requirement of INR250m should be the paid-up equity capital and not any other form of capital on the date of making an application as sponsor, says Mr Suresh Surana, founder, RSM India.

At present, there are seven pension fund managers for NPS. Industry sources say that at least two more private players are evaluating the eligibility criteria laid down by the PFRDA.

Source: Asia Insurance Review

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