Govt's new criteria for pension funds

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The government has decided to adopt new investment criteria for funds lying in the new pension scheme, reports CNBC-TV18. 

 

This could mean more flow of funds into government bonds and some into equities as well. But left parties continue to oppose the new pension scheme.

 

New investment norms will apply to about Rs 1,500 cr. Most of it will flow into bonds, up to 5% could get into equities as well.

 

The new pension scheme has 19 states' support though three left-ruled states continue to oppose the bill in parliament. The Finance Minister may have to revise the pension bill to secure left support.

 

The FM says that the new norms will allow 5% investment in equity. The notification is to be an interim measure till the bill is passed. It will soon issue a notification detailing the new investment criteria for the new pension fund scheme.

 

He also adds that the norms will allow the new pension fund scheme to invest 5 % of its funds in equities. This notification will be an interim measure and applicable till the formal pension fund reform bill is passed in parliament.