MUMBAI: The funding universe of pension fund managers (PFMs) shall be expanded to prime 200 corporations from these within the F&O phase with market cap of above Rs5,000 crore, Supratim Bandyopadhyay, chairman, Pension Fund Regulatory and Development Authority (PFRDA), advised reporters on Tuesday.
PFMs can even be allowed to put money into preliminary public providing (IPOs), follow-on public providing (FPOs), and provide on the market points. The PFRDA will repair t standards for eligible IPOs and related major points.
Bandyopadhyay mentioned that the proposal to permit withdrawals by Systematic Withdrawal Plans (SWP) as an alternative of annuities is a part of a PFRDA invoice that has been launched within the Parliament. Currently NPS subscribers have to make use of 40% of their corpus to purchase an annuity (a set pension) at maturity, on the age of 60. An SWP by comparability will give subscribers the selection of when and the way a lot to withdraw from their pension corpus after maturity.
Besides, the federal government is more likely to make PFRDA the regulator for superannuation funds. Superannuation funds at the moment function in a regulatory vacuum. They are given approval by the revenue tax division and need to abide by the rules of the finance ministry. However, the federal government is in talks with PFRDA, the authority to control these funds, Bandyopadhyay added.
Once the PFRDA receives regulatory powers, they may ask superannuation funds to submit their accounts and paperwork and test whether or not the rules set by the ministry of finance are being noticed. If not, they are going to be given the choice to switch their funds to NPS and change into a part of the NPS system. He added that there are benefits of transferring superannuation funds to NPS as a result of, in superannuation funds solely one-third could be withdrawn tax free at maturity, whereas in NPS, this stands at is 40% of the subscriber’s corpus.
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