PFRDA Orders : New Pension Scheme (NPS) - Changes in Investment Guidelines for the Government Sector
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
CIRCULAR
File No.: PFRDA/2O13/16/PFM/4
Date: 15 Oct 2013
To,
All Pension Funds
Subject: Investment Guidelines
1. Changes in Investment Guidelines for the Government Sector
1.1 Debt securities selected for Investments should have a minimum
residual maturity period of three years from the date of investment by
the Pension Fund.
1.2 Debt securities must have an investment grade rating from at least
two credit rating agencies. Apart from ratings by agencies. PF shall
undertake their own due diligence for assessment of risks associated
with the securities before investments.
1.3 Credit Default Swaps (CDS) on Corporate Bonds are eligible derivative instruments.
1.4 Rated asset backed securities (ABS) are eligible securities for
investments provided they have a residual maturity of not less than
three years and have an investment grade rating from at least two rating
agencies.
2. Guidelines for Private Sector — Corporate CG and NPS lite
Please note that both Corporate CG and NPS Lite Schemes follow the
Government pattern of investment and hence investment guidelines as
applicable to the Government sector and any subsequent amendments to
investment guidelines of Government sector will also be applicable to
Corporate CG and NPS lite Schemes. Investment guidelines, and any
subsequent changes thereto as applicable to the Government sector,
therefore should be adopted simultaneously for Corporate CG and NPS Lite
Scheme.
sd/-
(Subroto Das)
Chief General Manager
Source : www.pfrda.org.in
[http://pfrda.org.in/writereaddata/linkimages/changes%20Investment%20Guidelines968531261.pdf]
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