NPS Investment Guidelines as per SEBI permission

Investment Guidelines for NPS Schemes – permitting Pension Funds to invest in Overnight Funds and all such short duration funds as may be permitted by SEBI

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016

CIRCULAR

PFRDA/2019/22/REG-PF/3

Date: 20th November, 2019

To,
All Pension Funds

SUBJECT: Change in Investment Guidelines for NPS Schemes — permitting Pension Funds to invest in Overnight Funds and all such short duration funds as may be permitted by SEBI from time to time

Reference is invited to the following Investment Guidelines and subsequent Circulars pertaining thereto issued by the Authority:

i. Investment guidelines dated 03.06.2015 for NPS Schemes (Applicable to Scheme CG, Scheme SG, Corporate CG and Lite Schemes NPS and APY)

ii. Investment Guidelines dated 04.05.2017 in respect of NPS Schemes {Other than Govt. Sector (CG & SG), Corporate CG, NPS Lite and APY}

iii. Circular dated 09.10.2017 regarding Clarification on investment guidelines

iv. Circular dated 20.08.2018 regarding Change in Investment Guidelines

v. Circular dated 02.11.2018 regarding Clarification on Change in Investment Guidelines for NPS Schemes

vi. Circular dated 22.11.2018 regarding Clarification Change in Investment Guidelines for NPS Schemes

vii. Circular dated 25.03.2019 regarding Amendment to Investment guidelines

2. It has been decided by the Authority to allow Pension Funds to invest in Overnight Funds and all such short duration funds as may be permitted by SEBI from time to time for investment of surplus funds for short term investment, under the category ‘Short-term debt instruments and related instruments’ of Investment guidelines for NPS schemes issued by the Authority.

3. Accordingly, the following Clause has been inserted in the Investment Guidelines dated 03.06.2015 for NPS Schemes applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite Schemes, APY and Investment Guidelines dated 04.05.2017 for NPS Schemes {Other than Govt. Sector (CG & SG), Corporate CG, NPS Lite and APY}and dated 04.05.2017 under the category ‘Short-term debt instruments and related instruments’:

“(d) Investment in units of Overnight Funds and all such short duration funds as may be permitted by SEBI from time to time with the condition that the average total asset under management of AMC for the most recent six month period should be at least Rs.5,000/- crores.”

4. The investment made by Pension Funds in Overnight Funds and all such short duration funds as may be permitted by SEBI from time to time, shall be eligible for payment of IMF to Pension Funds.

5. Subject to the aforementioned revision, all other terms and conditions as contained in the aforementioned investment guidelines and subsequent amendments shall remain unchanged. All Pension funds are called upon to note these changes and ensure necessary compliance.

6. This circular is issued in exercise of powers of the Authority under sub-clause (b) of sub-section (2) of Section 14 read with Section 23 of the PFRDA Act, 2013 and sub-regulation (1) of Regulation 14 of the PFRDA (Pension Fund) Regulations, 2015.

7. The revision shall be effective from the date of this circular.

Sumit Kumar
General Manager

Read / Download NPS Investment Guidelines as per SEBI permission

Also check the following links related to this topic:

Amendment To Investment Guidelines For NPS Schemes – PFRDA Circular

NPS – Central Government can now change the investment pattern and choice of Pension funds

Amendment to Revised Investment Guidelines for NPS Schemes