PFRDA: Amendment to the investment Guidelines (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana)

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutab Institutional Area,
Katwaria Sarai, New Delhi-110016.

Ph: 011-26517501, 26517503, 26133730
Fax: 011-26517507
Website: www.pfrda.org.in

CIRCULAR

PFRDA/2019/8/SUP-PF/2

Date: 25.03.2019

Subject: Amendment to the investment Guidelines (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana)

Reference is invited to the Investment Guidelines for NPS Schemes (Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana) dated 3rd June 2015 issued vide circular no. PERDA/2015/16/PFM/7, the Change in Investment guidelines for NPS schemes W.r.t. Investment in equity Mutual funds vide circular no. PERDA/2018/56/PF/2 dated 20th August 2018 and Revised rating criteria for investments under NPS Schemes vide circular No. PERDA/2018/02/PF/02 dated 08.05.2018. The changes hereunder shall apply only to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana.

2. In order to provide flexibility to the Pension Funds to improve the scheme performance depending upon the market conditions, it has been decided to increase the cap on Government Securities & related investments and Short term debt instruments & related investments by 5% each.

3. The asset class wise revised caps on the various asset classes are as under:

Asset ClassCaps on Investments for composite schemes
Government Securities & related investmentsUpto 55%
Debt Instruments & related investmentsUpto 45%
Equity & related investmentsUpto 15%
Asset backed, trust structured etc.Upto 5%
Short term debt instruments & related investmentsUpto 10%

4.The other terms and conditions as mentioned in the circular PERDA/2015/16/PFM/7 dated 03.06.2015, circular no. PERDA/2018/56/PF/2 dated 20th August 2018 and circular No. PFRDA/2018/02/PF/02 dated 08.05.2018 shall remain the same.

This circular is issued in exercise of powers of the Authority under sub-clause (b) of the sub-section (2) of section 14 of Pension Fund Regulatory and Development Authority Act, 2013 read with regulation 14 and 43 of PFRDA (Pension Fund) Regulation, 2015.

This would be effective from 01.04.2019.

Venkateswarlu Peri
(Chief General Manager)

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