It is pouring regulations on the pension industry side as the PFRDA—armed with a statutory recognition - goes about building a complete regulatory architecture for this sector.

On the heels of rolling out five draft regulations, the pension regulator PFRDA’s Board has now given its nod for another four key regulations.

The four regulations—whose drafts were cleared at the recent Board meeting—related to custodians, central record keeping agency, Trustee Bank and enquiry, investigation and adjudication, R.V.Verma, officiating Chairman, PFRDA, told BusinessLine here.

The rollout of these regulations—after receiving feedback from public—is a confidence building effort across stakeholders in the pension sector, Verma said.

This will set the stage for PFRDA to regulate the entire gamut of activities, institutions, processes and products in the pension industry.

These regulations set the standards for eligibility, governance of such intermediaries.

A custodian is a specialised financial institution responsible for safeguarding individual’s financial assets. Currently, Stock Holding Corporation of India Ltd (SHCIL) is a custodian for National Pension System (NPS)

Prior to these draft regulations, there were only guidelines covering these areas, sources said.

With Parliament giving the necessary statutory backing to PFRDA, the pension regulator is wasting no time in putting in place a new regulatory framework.

These four regulations come on the heels of the pension regulator approving as many as five draft regulations relating to points of presence (POP), aggregators, grievance redress, subscribers’ education and protection fund, and pension fund advisory committee.

>Srivats.kr@thehindu.co.in

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