FDI in Pension Sector: Last month, the government approved a bill in Parliament to raise the FDI limit to 49 per cent to 74 per cent in the insurance sector.
Possibility of bill coming in monsoon session
The government may raise the limit of Foreign Direct Investment (FDI) in the pension sector to 74 percent. A bill in this regard is expected to come in the next Parliament session. Sources have given this information. Last month, the government approved a bill in Parliament to raise the FDI limit to 49 per cent to 74 per cent in the insurance sector. The Insurance Act, 1938 was last amended in 2015, raising the FDI limit to 49 per cent. Foreign capital inflows have been Rs 26,000 crore in the last 5 years due to the increase in FDI limit.
The demand for raising the FDI limit in the pension sector by amending the Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013 may be based on various approvals in the monsoon session or winter session, the sources said. Currently FDI in the pension fund is 49 per cent. Sources said that the amendment bill may include the separation of NPS Trust from PFRDA.
He said, the power, function and duty of the NPS Trust, which is currently subject to the PFRDA (National Pension System Trust) Regulations 2015, can come under a Charitable Trust or Companies Act. The motive behind this is to keep the NPS Trust separate from the pension regulator and manage the board by 15 members.
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