Amendment to Revised Investment Guidelines for NPS Schemes

PFRDA amends Revised Investment Guidelines for NPS Schemes applicable to Government Sector, Corporate CG and NPS Lite Schemes

PF Regulatory and Development Authority has issued Amendment to revised investment guidelines for NPS Schemes Applicable to Government Sector, Corporate CG and NPS lite schemes of NPS

1st Floor, ICADR Building,  Plot No.  6,
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PFRDA/2015/12/PFM/06                                                                                                                 Date: 31st March  2015


All Pension Funds,

Subject:  Amendment   to Revised  Investment Guidelines   for NPS schemes.

The existing circular no. PFRDA/2014/02/PFM/1  dated 29-Jan-2014  on the subject Revision  of  Investment  Guidelines  for  NPS  Schemes  is amended  as  highlighted under:

Government Sector NPS Schemes (Applicable to Government Sector, Corporate CG and
NPS lite schemes of NPS)
(ii)            Debt Securities  (Up  to  40%)/  point (a) Debt securities having a minimum residual maturity period of three years  from  the  date  of investment  by the  Pension  Fund  issued  by  Bodies  Corporate including  banks and public financial Institutions;  Provided that  the  investment  in  this  category  is   made  in instruments   having   an minimum    “AA”  or equivalent investment    grade  rating  from  at least one credit rating agency regulated by SEBI,  under SEBI (Credit Rating Agency)  Regulation 1999.  Apart from rating by an agency,  PFMs shall undertake  their own due diligence   for assessment  of risks associated with the securities before investments.
Private Sector NPS {Applicable to E (Tier  I   & II),  C (Tier-I  & II)  and G (Tier I    & II)}
C/ (ii) Credit rated debt securities with residual maturity of not less than three years from the date of investment, issued by Bodies Corporate including scheduled commercial banks and public financial institutions [as defined in  Section 4A of the Companies Act] 1956, Provided that  the investment in  this category is made in instruments  having  an minimum    “AA”   or equivalent   investment  grade   rating from   at  least    one  credit  rating agency regulated  by  SEBI,   under  SEBI   ( Credit  Rating  Agency  ) Regulation 1999. PFM has to do his own due diligence too

2.  The above stated amendments are applicable to the inflow of the fresh funds w.e.f.  01.04.2015.

3.  All other extant investment guidelines to continue.

Sumeet Kaur Kapoor
(General  Manager)

Download PFRDA Circular No. PFRDA/2015/12/PFM/06  dated 31.03.2015

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