New Delhi: The proposed PFRDA Bill, aimed at setting up a regulator and manage new pension system, will not allow pension schemes to invest their money in individual stocks.

The Pension Fund Regulatory and Development Authority Bill (PFRDA) bill, which has already been vetted by the Law Ministry, will only allow contribution to the pension funds to be invested in index funds in the stock markets, interim pension regulator D Swarup told PTI here.

Existing pension products, offered by mutual funds and insurance companies, will have to comply to new norms for the proposed pension sector, Swarup said. Currently, these funds invest subscribers money in individual stocks too.

The minimum initial paid up capital requirement in the proposed pension sector will be somewhere between Rs 10 crore, needed for mutual funds, and Rs 100 crore, prescribed for insurance companies, he said.

Though mutual funds are regulated by market regulator SEBI and insurance companies by IRDA, there was a need of sepcialised pension regulator, Swarup said adding his viewpoint was supported by IRDA Chairman C S Rao.

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