Government notifies increase in foreign direct investment limit in pension fund management 49% to 74% Below National Pension System (NPS). The move is opening doors for experienced overseas partners in the region and facilitating greater competition in the fledgling segment. Pension Fund Regulatory and Development Authority (PFRDA) The Act adds limits on foreign direct investment in the insurance sector.
National Pension System (NPS) was launched in January 2004 It was opened to government employees and later to all in 2009. There are two types of accounts in NPS – Tier 1 and Tier 2. If a person invests in Tier 1 account then he gets additional tax exemption. 50,000 Rs. National Pension Scheme is being regulated PFRDA.
7 Pension Funds in NPS:
- HDFC Pension Management
- ICICI Pru Pension Fund Management
- Kotak Mahindra Pension Fund Management
- LIC Pension Fund
- SBI Pension Fund
- UTI Retirement Solutions
- Aditya Birla Sun Life Pension Management
Benefits of FDI in Pension Fund:
- Many companies need capital for their expansion and with 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 increase access to pensions.
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