PFRDA constitutes committee to revamp NPS rules

The pension regulator, Pension Fund Regulatory and Development Authority of India (PFRDA) has constituted a committee for a comprehensive review of the existing NPS investment guidelines, benchmarking them with leading global pension systems and the evolving Indian investment ecosystem.

In a statement, the regulator said that a committee of investment experts for Strategic Asset Allocation and Risk Governance (SAARG) will review, recommend and modernise the investment framework under the NPS. "The objective is to strengthen the investment architecture of NPS to support long-term retirement wealth creation, enhance diversification, improve risk management practices and expand subscriber choice," it noted in a statement adding that the scope of the SAARG includes examination of strategic asset allocation frameworks, introduction and review of asset classes, performance measurement and accountability mechanisms, ALM practices, and valuation standards for alternative investments.

The panel will be chaired by Narayan Ramachandran, former country head and CEO of Morgan Stanley India, and will also look at portfolio stability and liquidity optimisation measures, governance and intermediary architecture, and integration of sustainability considerations in investment decision-making. "It will also recommend on any other emerging matter impacting investment patterns, governance, risk management and subscriber outcomes," the statement noted.