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Power to make guidelines and give directions
PFRDA may, from time to time, issue such directions and Guidelines to NPS intermediaries as may be necessary for protecting the interests of the subscribers.
Investment Guidelines
The Pension Fund will manage 3 separate schemes, each investing in a different asset class, being :
Asset Class E (Equity market instruments) – The investment in this asset class would be subject to a cap if 50%. The asset class will be invested in index funds that replicate the portfolio of a particular index such as BSE Sensitive index and NSE Nifty 50 index. These schemes invest in securities in the same weightage comprising of an index.
Asset Class G (Government Securities) – This asset class will be invested in central government bonds and state government bonds.
Asset Class C (Credit risk bearing fixed income instruments) – This asset class will be invested in the following instruments :
PFRDA may, from time to time, issue such directions and Guidelines to NPS intermediaries as may be necessary for protecting the interests of the subscribers.
Investment Guidelines
The Pension Fund will manage 3 separate schemes, each investing in a different asset class, being :
Asset Class E (Equity market instruments) – The investment in this asset class would be subject to a cap if 50%. The asset class will be invested in index funds that replicate the portfolio of a particular index such as BSE Sensitive index and NSE Nifty 50 index. These schemes invest in securities in the same weightage comprising of an index.
Asset Class G (Government Securities) – This asset class will be invested in central government bonds and state government bonds.
Asset Class C (Credit risk bearing fixed income instruments) – This asset class will be invested in the following instruments :
- Liquid Funds of AMCs regulated by SEBI (as prescribed in the offer document).
- Fixed Deposits of scheduled commercial banks (as prescribed in the offer document).
- Debt securities with maturity of not less than three years tenure issued by bodies corporate including commercial banks and public financial institutions provided that at least 75% of the investment in this category is made in instruments having an investment grade rating from at least one credit rating agency.
- Credit Rated Public Financial Institutions/PSU Banks.
- Credit Rated Municipal Bonds/Infrastructure Bonds.