New Delhi, November 17: The Cabinet gave its seal of approval to amendments to the PFRDA Bill 2011, while agreeing to the proposed 26% foreign investment in the pension sector. The Parliamentary Standing Committee on Finance has already examined the bill and it is likely to be taken up for consideration in the Winter Session beginning November 22.
The government said that it will not include FDI cap in the legislation itself for retaining the flexibility of changing it through an executive order. It said that the 26% FDI cap is to be mentioned in the regulations to the legislation at par with the insurance sector. However, it would like to maintain the flexibility of changing the cap of FDI and that is why it has not been kept as part of the bill. The intended legislation will not provide guaranteed returns to the pension scheme holders.
The changes to the PFRDA Bill were approved by the Union Cabinet at its meeting in New Delhi.
The committee has asked the cabinet to indicate the FDI cap in the legislation itself and provide minimum assured return to subscribers.
–Agencies–