FDI LIMIT IN NPS FUND MANAGERS HIKED TO 74%
- The government notified a hike in the foreign direct investment limit in pension fund management to 74% from 49% under the national pension system (NPS).
- This step is opening doors for experienced foreign partners in this space and facilitating more competition in the fledgling segment.
- Pension Fund Regulatory &Development Authority (PFRDA) Act links the FDI ceiling in the insurance sector.
- Many companies need capital for their expansion and due to the increase in FDI limit, they will get more money.
- Existing fund holders will also be able to sell their excess stake.
- Foreign companies will be able to provide new products, technology.
- Help in increasing the reach of pensions.