NEW DELHI: Government may hike the foreign direct investment (FDI) limit in the pension sector to up to 100% and a Bill in this regard is expected in the next Parliament session, according to sources.
This would align with the insurance sector where up to 100% FDI is permitted.Last year, Parliament approved a Bill to increase the FDI limit in the insurance sector from 74% to 100%. Prior amendments of the Insurance Act, 1938 was done in 2015 following which the FDI ceiling increased from 49% to 74%.Amendment to Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013 seeking to raise the FDI limit in the pension sector may come in the Monsoon Session or Winter Session depending on various approvals, sources said. Currently, the FDI in pension fund is capped at 49%. Besides, sources said the amendment Bill may contain separation of NPS Trust from the PFRDA. The powers, functions and duties of the NPS Trust are currently laid down under the PFRDA (National Pension System Trust) Regulations 2015.
