The Hindu Business Line : `Cap on pension sector FDI likely at 26 pc'

"FDI may be initially pegged at 26 per cent for the pension sector. However, it is ultimately for the Government to decide and notify it," the Chairman, interim Pension Fund Regulatory & Development Authority (PFRDA), Mr D. Swarup, said here on Wednesday.

Speaking on the sidelines of an Assocham seminar, Mr Swarup said that PFRDA had an open mind on the number of pension fund managers (PFM) that it would like to register. "I have an open mind. There could be more than six players and more than one PSU (as had been proposed earlier)," Mr Swarup said.

Mr Swarup said pension reforms would take into consideration the interest of all stakeholders. "Let me allay all apprehensions about the new pension scheme. It will be our duty to regulate the sector. It will be a win-win situation for all," he said. The Bill to set up a statutory PFRDA bill is under consideration of a Standing Committee of Parliament.

The PFRDA chief also said that he had an "open mind" on the investment limits proposed for the schemes floated by the PFMs. As of now, PFMs can offer three schemes - safe, balanced and growth - each having separate sub-ceiling for equity exposure.

Mr Swarup also expressed concern over the rising pension bill of the Government. "The pension bill of Centre and States is very very high at Rs 52,000 crore or 1.6-1.7 per cent of GDP. The burden is growing by 20 per cent annually," he said.

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