PFRDA opposes to Sebi's MF launching pension schemes

Sebi Chief UK Sinha has repeatedly asked mutual funds to access long-term money by launching pension schemes. However, in the absence of concrete rules, fund houses have not cotton-on to the idea and pension regulator PFRDA is not impressed either. A question to PFRDA Chief Yogesh Agarwal on whether such a move was needed evoked quite a spirited response.

Yogesh Agarwal, Chairman, PFRDA says, "Why don't you ask this question to UK Sinha. Why are you asking me this question. I just said coming of NPS in the accumulation stage, there is no role left for insurance industry or the MF industry. For the insurance industry there will be a role in terms of annuity services once the person retires but what kind of role the MF industry will have to play in pension industry is a question that can be best put to the person who postulated this idea. According to me there is not much role for the MF industry in the pension industry."

Agarwal argues that PFRDA is already monitoring new pension scheme, which includes public sector companies, private companies and even individuals.

PFRDA is clear that mutual fund managers who are involved with existing NPS fund deployment cannot participate in any other pension scheme. Till concrete guidelines on such a move are drawn up, PFRDA is certain MFs cannot encroach on its turf and launch pension schemes, despite encouragement from AMFI or Sebi.