PFRDA revises valuation guidelines for valuation of securities under NPS Schemes and other pension Schemes

Nov 22, 2019 | by Avantis RegTech Legal Research Team

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Labour Compliance

The Pension Fund Regulatory and Development Authority (PFRDA) on November 21, 2019, has revised the valuation guidelines for valuation of securities under NPS Schemes and other pension Schemes under the PFRDA (Preparation of Financial Statements and Auditors Report of Schemes under National pension System) Guidelines, 2012. The objective of these guidelines is to specify methodology and the manner in which securities or assets should be valued by Pension Funds to ensure consistent valuation and transparency. It should be reviewed annually or more frequently by NPS Trust, preferably before the second quarter of every financial year to ensure the appropriateness and accuracy of the methodologies used and its effective implementation in valuing the securities or assets.

The followings are the list of valuation policies for investments made by the Pension Funds:-

1. Valuation of Equity and Equity related Instrument;

2. Valuation of Shares on Merger, De-merger and Other Corporate Action Events;

3. Valuation of Debt Securities (other than government securities);

4. Government Securities;

5. Valuation of Mutual Fund Units;

6. Valuation of Bank Fixed Deposits

[Circular No. PFRDA/2019/23/REG-PF/4]


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