Change in Investment Guidelines for NPS Schemes – PFRDA Circular
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016
Ph : 011-26517501, 26517503, 26133730
Fax : 011-26517507
Website : www.pfrda.org.in
B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016
Ph : 011-26517501, 26517503, 26133730
Fax : 011-26517507
Website : www.pfrda.org.in
CIRCULAR
PFRDA/2019/22/REG-PF/3
Date: 20th November, 2019
To,All Pension Funds
Change in Investment Guidelines for
NPS Schemes — permitting Pension Funds to invest in Overnight Funds and
all such short duration funds as may be permitted by SEBI from time to
time
Reference is invited to the following Investment Guidelines and subsequent Circulars pertaining thereto issued by the Authority:
i. Investment guidelines dated 03.06.2015 for
NPS Schemes (Applicable to Scheme CG, Scheme SG, Corporate CG and Lite
Schemes NPS and APY)
ii. Investment Guidelines dated 04.05.2017 in
respect of NPS Schemes {Other than Govt. Sector (CG & SG), Corporate
CG, NPS Lite and APY}
iii. Circular dated 09.10.2017 regarding Clarification on investment guidelines
iv. Circular dated 20.08.2018 regarding Change in Investment Guidelines
v. Circular dated 02.11.2018 regarding Clarification on Change in Investment Guidelines for NPS Schemes
vi. Circular dated 22.11.2018 regarding Clarification Change in Investment Guidelines for NPS Schemes
vii. Circular dated 25.03.2019 regarding Amendment to Investment guidelines
2. It has been decided by the Authority to
allow Pension Funds to invest in Overnight Funds and all such short
duration funds as may be permitted by SEBI from time to
time for investment of surplus funds for short term investment, under
the category ‘Short-term debt instruments and related instruments’ of
Investment guidelines for NPS schemes issued by the Authority.
3. Accordingly, the following Clause has been
inserted in the Investment Guidelines dated 03.06.2015 for NPS Schemes
applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite Schemes,
APY and Investment Guidelines dated 04.05.2017 for NPS Schemes {Other
than Govt. Sector (CG & SG), Corporate CG, NPS Lite and APY}and
dated 04.05.2017 under the category ‘Short-term debt instruments and
related instruments’:
“(d) Investment in units of Overnight
Funds and all such short duration funds as may be permitted by SEBI from
time to time with the condition that the average total asset under
management of AMC for the most recent six month period should be at
least Rs.5,000/- crores.”
4. The investment made by Pension Funds in
Overnight Funds and all such short duration funds as may be permitted by
SEBI from time to time, shall be eligible for payment of IMF to Pension
Funds.
5. Subject to the aforementioned revision, all
other terms and conditions as contained in the aforementioned
investment guidelines and subsequent amendments shall remain unchanged.
All Pension funds are called upon to note these changes and ensure
necessary compliance.
6. This circular is issued in exercise of
powers of the Authority under sub-clause (b) of sub-section (2) of
Section 14 read with Section 23 of the PFRDA Act, 2013 and
sub-regulation (1) of Regulation 14 of the PFRDA (Pension Fund)
Regulations, 2015.
7. The revision shall be effective from the date of this circular.
Sunlit Kumar
General Manager
General Manager