PFRDA permits Pension Funds to invest in Overnight Funds and short duration funds

Nov 25, 2019 | by Avantis RegTech Legal Research Team

A |  A

The Pension Fund Regulatory and Development Authority (PFRDA) on November 20, 2019, issues Circular to amend Investment Guidelines for National Pension System (NPS) Schemes by permitting Pension Funds to invest in Overnight Funds and all short duration funds as permitted by SEBI from time to time for investment of surplus funds for short term investment, under the category of ‘Short-term debt instruments and related instruments’ of Investment guidelines for NPS Schemes.

The following clause (d) has been inserted in the Investment Guidelines dated June 03, 2015:-

“Investment in units of Overnight Funds and all such short duration funds as may be permitted by SEBI from time to time with the condition that the average total assets under management of AMC for the most recent six month period should be at least Rs. 5,000/- crores.”

It shall be applicable to Scheme CG, SG, Corporate CG and NPS Lite Schemes, APY and Investment Guidelines for NPS Schemes [other than Government Sector (CG & SG), Corporate CG, NPS Lite Schemes and APY] under the category ‘Short term debt instruments and related instruments. The investment made by Pension Funds in Overnight Funds and all such short duration funds shall be eligible for IMF to Pension Funds.

This Circular shall be effective from November 20, 2019.

[Circular No. PFRDA/2019/22/REG-PF/3]


Bookmark

Related Updates



Alternate Text

Get updates on the go on RuleZbook Mobile App.