21 firms express interest to set up non-govt staff pension funds

Twenty-one companies have submitted expressions of interest (EoIs) to the pension regulator to set up pension funds for non-government employees from April this year. After the selection process, the Pension Fund and Regulatory Development Authority (PFRDA) may allow up to six firms to set up pension funds.

“More than 20 companies have expressed interest. After validation of the applications by January 16, the eligible companies will be asked to submit proposals for setting up pension funds,” said D Swarup, chairman, PFRDA. On Friday was the last day for submission of EoI, the bid for which was floated on December 26 last year.

PFRDA intends to appoint the fund managers by the first week of February. Also, it is expected to start the process of appointment of point of presence, where subscribers can deposit their funds, over the next week to 10 days.

Among the host of conditions specified in the Primary Information Memorandum and Expression of Interest package, the regulator intends to allow up to 26 per cent foreign investment but with the rider that the direct or indirect holding should not exceed 26 per cent.

Other conditions include — a new company has to be floated, which will get a ‘certificate of commencement of business’ from PFRDA; at least five years experience of fund management; monthly average assets under management not less than Rs 8,000 crore for the last 12 months and net worth of Rs 10 crore.