India’s pension funds will soon be allowed to invest in select publicly listed companies and initial public offerings, the sector regulator said. Pension Fund Regulatory and Development Authority (PFRDA) chairman Supratim Bandyopadhyay said pension fund managers will get to invest in India’s top 200 listed companies, apart from IPOs, follow-on public offerings, and offers for sale issues. Currently pension funds can only invest in companies with market cap more than ₹5,000 crore which also are in the F&O (futures and options) segment of bourses. Currently, NPS subscribers have to use 40% of their corpus to buy an annuity (a fixed pension) at maturity, at the age of 60. Superannuation funds are retirement funds run by corporates.

Source: Mint July 20, 2021 09:33 UTC