Govt may hike FDI limit in pension sector, Bill likely in Monsoon session

The government may hike the foreign direct investment (FDI) limit in the pension sector to up to 100 per cent and a Bill in this regard is expected in the next Parliament session, according to sources. This would align with the insurance sector where up to 100 per cent FDI is permitted. Last year, Parliament approved a Bill to increase the FDI limit in the insurance sector from 74 per cent to 100 per cent. Prior amendments of the Insurance Act, 1938 was done in 2015 following which the FDI ceiling increased from 49 per cent to 74 per cent. Amendment to Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013 seeking to raise the FDI limit in the pension sector may come in the Monsoon Session or Winter Session depending on various approvals, sources said. Currently, the FDI in pension fund is capped at 49 per cent. Besides, sources said the amendment Bill may contain separation of NPS Trust from the PFRDA. The powers, functions and duties of the NPS Trust, which are ...

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