The Pension Fund Regulatory and Development Authority of India (PFRDA)has sought approval from the finance ministry to raise the limit of government employees” pension funds in the stock market up to 50%.
Currently, the pension funds under PFRDA is allowed to invest up to 15% of the corpus into stock market. PFRDA chairman Hemant G Contrator told that they should also get the same exposure to the stock market as the employees of private sector get which is at 50%.
The raise in the invest limit into equity market is one of the recommendations of the G N Bajpapai committee stating the investment of pension funds into stock market should be enhanced.
Contrator said equity in the long run is always better performing than other instruments.
SOURCE:THE FINANCIAL EXPRESS 12-10-15, NEW DELHI, PAGE 3
