PFRDA Clarification on Guidelines for investment by Pension Funds
PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan
Qutab Institutional Area
Katwaria Sarai, New Delhi-110016.
Phone: 011-26517501, 26517503, 26133730 Fax: 011-26517507
Website- www.pfrda.org.in
PFRDA/2021/39/REG-PF/5
Date: 16th September, 2021
CIRCULAR
To
CEOs of All Pension Funds
Subject: Clarification on Guidelines for investment by Pension Funds in IPO/FPO and/or OFS issued vide Circular dated 27.07.2021 -req.
Dear Sir/Madam,
Please refer to the Circular No.PFRDAl2021/32/REG-PF/4 dated 27.07.2021 issued by PFRDA on Guidelines for investment by Pension Funds in an IPO/FPO and/or OFS under NPS and other pension schemes regulated/administered by the Authority.
2. It is clarified that if the Pension Fund has invested in equity shares of any company through an IPO and if the equity shares do not fulfill the market capitalization condition prescribed under investment guidelines post listing, a time period of maximum one year shall be provided to the PF for making decision on selling/holding such stock. At the time of completion of one year, if no decision to sell such stock was made by the Pension Fund, the said stock shall be sold by the Pension Fund if it does not fall in the last list of Top 200 stocks published by NPS Trust.
3. It is also clarified that the Pension Fund, who has received allotment in the IPO, can acquire fresh shares of the same company as long as the investment meets the conditions prescribed in Investment Guidelines/Circulars issued in this regard.
4. All the Pension Funds are called upon to note the above and ensure necessary compliance.
Yours sincerely,
Ashok Kumar Soni
Executive Director