The Pension Fund Regulatory and Development Authority, (PFRDA) on April 18, 2023, published the Pension Fund Regulatory and Development Authority (National Pension System Trust) (Amendment) Regulations, 2023 to further amend the Pension Fund Regulatory and Development Authority (National Pension System Trust) Regulations, 2015.
These Regulations shall come into force on April 18, 2023
The following has been amended namely: -
• In Regulation 2 which states “definitions” the Sub-regulation (1)(i) shall be substituted as follows namely: -
“Assets of the National Pension System Trust” shall mean the assets of the subscribers held in the name of the National Pension System Trust, the funds of the subscribers held in the account of National Pension System Trust with Trustee Bank, e-NPS web portal hosted by the National Pension System Trust or by any other intermediary on behalf of such Trust and such other assets both moveable and immoveable, as are recorded in the books of accounts of National Pension System Trust, These assets shall comprise cash, securities, and any other instruments as specified in the investment guidelines issued by the Authority and held by and in the name of the National Pension System Trust, on behalf of the subscribers".
• In regulation 11 which states “Powers and functions of the Board of Trustees” the following shall be substituted namely: -
(i) In the Sub-regulation (2)(vi) shall be substituted as follows namely: -
“(vi) appoint officers and other staff for implementation or administration of the functions of the trust, and to determine their pay and allowances and other terms and conditions of service, with intimation to the Authority”
(ii) In the Existing Sub-regulation (2)(x) shall be substituted as follows namely: -
“(x) monitor the activities of and issue instructions to the custodian, not to assign, transfer, hypothecate, pledge, lend or otherwise dispose of any assets or property of the National Pension System Trust, held by such custodian, except to the extent specifically permitted under any circulars or directions or guidelines issued, by the Authority, on that behalf”
(iii) In the Sub-regulation (2)(xviii) regulation 11 shall be substituted as follows namely: -
“(xviii) arrange for a suitable indemnity policy for the trustees from an Indian Insurance Company to provide indemnity to trustees, only for their bona fide actions, carried out in good faith. The National Pension System Trust may provide legal and other assistance to the trustees or its officers, in any disputes or legal proceedings arising on account of their bonafide actions which have been taken while acting in that capacity”
(iv) in sub-regulation (2), after clause (xviii), a new clause (xix) shall be inserted in the place of existing clause (xix) as follows namely: -
“(xix) manage and monitor on a regular basis the operation of the “eNPS" online web portal hosted by the National Pension System Trust or by any other intermediary on behalf of such Trust, including any functions or activities incidental thereto”
(v) in Sub-regulation (2), clause (xix) as existed (prior to insertion), shall be renumbered as new clause (xx)”
• In Regulation 12 which states “Obligations, duties, responsibilities, and liabilities of Board of Trustees” Sub-regulation (k) shall be substituted as follows namely: -
“(k) it shall not acquire any asset out of the pension funds, which involves the assumption of any liability upon itself, which may result in encumbrance of the property of the National Pension System Trust or that of the subscribers in any manner, except to the extent specifically permitted under any circulars or directions or guidelines issued, by the Authority, on that behalf”
[Notification No. PFRDA/12/RGL/139/5]
