The Pension Fund Regulatory and Development Authority (PFRDA) has issued new Pension Fund Regulatory and Development Authority (Custodian of Securities) (Amendment) Regulations, 2021 dated 22 September.
As per the regulations, the sponsor of a pension fund, trustee bank or central record keeping agency or their associates, who are holding 50 percent or more of the voting rights of the share capital of a custodian, can apply to become custodian with the Authority albeit with some conditions.
As per the conditions, the sponsor, associates or the holding company should have net worth of at least Rs.50,000 crore.
It further said that 50 per cent or more of the directors of the custodian should be those who do not represent the interests of the sponsor or its associates and that no person shall be a director of both the custodian and the pension fund company.
It further said that the custodian and the pension fund company should not be a subsidiary of one another and both must sign and that they will act independently of each other in their dealings with the schemes.
These shall come into force on the date of their publication in the official gazette, it said.
The regulations are an amendment to Pension Fund Regulatory and Development Authority (Custodian of Securities) Regulations, 2015.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
