The Hindu Business Line : Pointers to Budget proposals — Independent pension regulator likely

GOING by the feelers sent out by the Economic Survey, the proposed Pension Fund Regulatory and Development Authority (PFRDA) would remain a separate entity regulating the country's pension sector in the days to come.

Stating that the PFRDA would guide the pension sector as it takes "a new leap" forward, the survey has said that the pension regulatory would "play a synergistic role, coordinating with the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority (IRDA).

At present, the Government has set up an interim PFRDA with legislative measures under way to make it a statutory body.

There had been suggestions soon after the United Progressive Alliance (UPA) Government took charge at the Centre that IRDA could be entrusted the role of regulating the pension sector as well. A final word on the issue is expected to come in the Union Budget to be presented on Thursday.

The survey points out that the new defined contribution pension system would create a new breed of large institutional investors who would participate in all the asset segments of the capital market.

The new system has already been ushered in, though in a limited manner, with all new recruits into the Central Government, barring armed forces, coming under its fold. In the days to come, it would be thrown open to the unorganised sector also.

The new pension structure would harness the existing structure of network of banks and post offices as points of contact for the pension subscribers.

More Stories on : Economic Survey | Regulatory Bodies & Rulings | Pension Plans

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