The Pension Fund Regulatory and Development Authority (PRDA) on April 28, 2022 has issued Amendments in Investment Guidelines-2021 for NPS Schemes (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana). This shall be in effect from April 28, 2022.
The following has been amended namely: -
• Para 2 under Point (b) of page 6 which specify “Investments in units of a Debt scheme of a Mutual Fund as regulated by Securities and Exchange Board of India where investment is in short term securities with Macaulay duration of less than 1 year viz. Overnight fund, Liquid Fund, Ultra Short Duration Fund and Low duration fund 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.” New point (d) has been inserted namely: -
“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 of India Limited (CCIL) as a 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.”
• Para 15 under point (iv) of page 11 which specify “While preparing the single consolidated list of stocks, average full market capitalization of the previous six month of the stocks shall be considered. Subsequent to any updation in the list, Pension Funds would have to rebalance their portfolios (if required) in line with updated list, within a period of one month. NPS Trust shall monitor the compliance of the above provision and inform PFRDA at regular interval”. Has been substituted namely: -
“While preparing the single consolidated list of stocks, average full market capitalization of the previous six month of the stocks shall be considered. Subsequent to any updation 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 accordingly.”
[Notification No. PFRDA/2022/09/REG-PF/01]
