PENSION REFORMS OFF THE BLOCKS, PROPOSALS CALLED FOR SIX FUNDS

The pension regulator set the stage for opening the business for non-government employees from April by seeking proposals for setting up six pension funds.

Eligibility Criteria for Fund Managers

• A new company has to be floated, which will get a 'certificate of commence- ment of business" from PFRDA.
• At least 5 years experience of fund management.
• Monthly average assets under management not less than Rs. 8,000 crore for the last 12 months.
• Direct and indirect foreign investment not more than 26%
• Net worth of Rs. 10 crore
• Sponsor will not hold more than 10% of equity in any other pension fund
• Sponsor will not hold more than 10% of equity in central record keeping agency under NPS
• Sponsor will not hold more than 5% of equity stake in NPS Custodian
• 50% independent directors.