In the pension sector too, the FDI limit is likely to be raised to 74 per cent

Currently, the foreign investment limit in the pension sector is 49 per cent

A bill is likely to be introduced in the next monsoon or winter session of Parliament.

New Delhi: After the insurance sector, the central government is likely to increase the foreign direct investment (FDI) limit in the pension sector to 74 per cent. According to sources, a bill in this regard is likely to be introduced in the next session of Parliament.

Last month, the central government approved a bill to increase the limit on foreign direct investment (FDI) in the insurance sector from 49 per cent to 74 per cent.

According to sources, the government is likely to introduce a bill to amend the Pension Funds Regulatory and Development Authority (PAFRDA) Act, 2013 in the monsoon or winter session of Parliament to increase the limit on foreign investment in the insurance sector.

Currently, the FDI limit in the pension sector is 49 per cent. According to sources, the government also wants to separate the NPS Trust from the PFRDA. An amendment bill is also likely to be introduced for this.

The powers, duties and functions of the NPS Trust currently fall under the PFRDA (National Pension System Trust) Regulation, 2015. The NPS Trust is now likely to be brought under the Companies Act to establish a charitable trust. The purpose of separating the NPS Trust from the Pension Regulator is to appoint experts as board members.

It may be mentioned that PFRDA was formed for the development of the pension sector. It may be mentioned that NPS has been made mandatory for all employees joining the Central Government from January 1, 2004. The fund has also been opened to the general public on a voluntary basis since May 1, 2009.