The Pension Fund Regulatory Development Authority (PFRDA) on April 28, 2022 has issued a notification to amend the Investment Guidelines-2021 for NPS Schemes (Other than Govt. Sector (CG & SG), Corporate CG, NPS Lite and APY).
The revised guidelines/ provisions are as followed:
• The Pension Funds are allowed to invest in Government Securities as Lender in Triparty Repo conducted over the Triparty Repo (Dealing) System (TREPS) provided by RBI through Clearing Corporation 01 India Limited (CCIL) as the settlement guarantor. The fulfilment of margin requirement, etc. for TREPS shall be on similar lines -as applicable for settlement of G- Sec outright trades currently managed by the Pension Funds.
• While preparing the single consolidated sheet of stocks, average full markets capitalization of the previous six month of the stocks shall be considered. Subsequent to any update in the list, Pension Funds would have to rebalance their portfolios (if required) in line with updated list, within a period of six month. The decision to hold such stocks in the portfolio shall have to be approved by the Investment Committee of the Pension Fund and also to be informed to the Board of Pension Fund. NPS Trust shall monitor the compliance of the above provision and inform PFRDA at regular interval.
All other terms and conditions as contained in the aforementioned guidelines shall remain unchanged. All Pension funds are called upon to note these changes and ensure necessary compliance.
[Circular No. PFRDA/2022/1 0/REG-PF/02]
