Lok Sabha clears pension bill, foreign investors can hold 26% stake
The Lok Sabha on Wednesday cleared the pension bill after nearly a decade.
NEW DELHI: After nearly a decade, the Lok Sabha finally cleared the pension bill that paves the way for individuals to plan for their post-retirement needs and allows foreign investors to acquire up to 26% stake in the sector.
The Pension Fund Regulatory and Development Authority (PFRDA) Bill was passed by the lower House after some tough political negotiations that included the government accepting a crucial suggestion made by the parliamentary standing committee on finance headed by BJP's Yashwant Sinha.
The government agreed to stipulate that the pension regulator will ensure that fund managers offer at least one product with an assured minimum return to protect investors from market volatility. The investment option will be in addition to the schemes that are already available. The schemes on offer give investors the choice to invest up to 50% in shares, that offer higher returns but are riskier. Alternatively, they can take a safer bet and invest the entire corpus in government bonds
The Pension Fund Regulatory and Development Authority (PFRDA) Bill was passed by the lower House after some tough political negotiations that included the government accepting a crucial suggestion made by the parliamentary standing committee on finance headed by BJP's Yashwant Sinha.
The government agreed to stipulate that the pension regulator will ensure that fund managers offer at least one product with an assured minimum return to protect investors from market volatility. The investment option will be in addition to the schemes that are already available. The schemes on offer give investors the choice to invest up to 50% in shares, that offer higher returns but are riskier. Alternatively, they can take a safer bet and invest the entire corpus in government bonds
RANJAY KUMAR
P G D M
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