Indian Economy News

Govt notifies 49% foreign investment cap in pension sector

  • Livemint" target="_blank">Livemint
  • April 28, 2015

New Delhi: Paving the way for greater role of foreign funds in the national pension system, the government on Monday notified the higher foreign investment of 49% in the pension sector. The ceiling will be a composite cap for foreign direct investment and foreign portfolio investment.

Foreign investors will be allowed to pick up a 26% stake in pension funds under the automatic route. But for a higher stake they will have to seek the approval of the Foreign Investment Promotion Board (FIPB), said a department of industrial policy and promotion press note.

The passage of the insurance laws (amendment) bill in Parliament that allows a higher 49% foreign investment limit had facilitated the higher foreign investment limit in the pension sector. This is because of a provision in the Pension Funds Regulatory and Development Authority Act that had linked the foreign investment ceiling in the pension sector with that of the insurance sector

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.