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Pension Fund Regulatory and Development Authority

Pension Fund Regulatory and Development Authority Act

Issue Date: 13 February 2024 Published: 15 February 2024
Gazette ID: CG-DL-E-15022024-252136 Download PDF Official source ↗
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                Core Purpose
            

            
Notification of the Pension Fund Regulatory and Development Authority (Pension Fund) (Amendment) Regulations, 2023, amending the PFRDA (Pension Fund) Regulations, 2015.

        

        

        
        
        

            

                
                    
                    
                    
                    
                
                Detailed Summary
            

            
Notification No. PFRDA/16/3/29/0089/2017-REG-PF, dated 9th February 2024, issued by the Pension Fund Regulatory and Development Authority under sub-section (1) of section 52 read with clauses (e), (m), (n), (o) and (p) of sub-section (2) thereof of the PFRDA Act, 2013 (23 of 2013), effective on publication, extensively amends the PFRDA (Pension Fund) Regulations, 2015: it revises the objective clause; redefines "business day" and "compliance officer"; inserts a definition of "key personnel of the pension fund" (CEO, chief investment officer, chief risk officer, chief information security officer, head of operations, compliance officer, and others); deletes former clause (d); inserts a definition of "pension Scheme" including the Atal Pension Yojana; redefines "principal officer of the pension fund/sponsor," "networth" (per section 2(57) of the Companies Act, 2013) and "sponsor" (a body corporate holding twenty per cent or more paid-up equity capital); and substitutes Regulations 4 through 9 governing the application for registration and fee, grounds for rejection, furnishing of information, verification of information, eligibility criteria for sponsors (at least five years' fund-management experience, regulation by RBI/SEBI/IRDAI, positive net worth of at least fifty crore rupees over the preceding five years, at least twenty-five crore rupees paid-up equity capital, profit after tax in at least three of five years), sponsor obligations after approval (incorporate the pension fund as a company under the Companies Act, 2013 with 'Pension Fund' in its name within twelve months, maintain minimum net worth of fifty crore rupees, cap foreign equity holding at seventy-four per cent or the percentage approved for an Indian Insurance Company under the Insurance Act, 1938, ensure at least fifty per cent independent directors, avoid cross-holding in other pension funds, meet 'fit and proper person' criteria under Schedule II), and the procedure, fees and validity period for grant of a certificate of registration (operations to commence within six months, extendable by a further six months for recorded reasons); the extracted text is truncated mid-clause within Regulation XI.

        

        

        
        

            

                
                    
                    
                    
                    
                    
                
                Full Text
            

            
            

                
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-15022024-252136
EXTRAORDINARY
PART III—Section 4
PUBLISHED BY AUTHORITY
No. 96]
NEW DELHI, TUESDAY, FEBRUARY 13, 2024/MAGHA 24, 1945

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
NOTIFICATION
New Delhi, the 9th February, 2024
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (PENSION FUND)
(AMENDMENT) REGULATIONS, 2023
No. PFRDA/16/3/29/0089/2017-REG-PF.-In exercise of the powers conferred by sub-section (1) of
section 52 read with clauses (e) (m), (n), (o) and (p) of sub-section (2) thereof of the Pension Fund Regulatory and
Development Authority Act, 2013 (23 of 2013), the Pension Fund Regulatory and Development Authority hereby
makes the following regulations to amend the Pension Fund Regulatory and Development Authority (Pension Fund)
Regulations, 2015, namely:-
1. These regulations may be called the Pension Fund Regulatory and Development Authority (Pension Fund)
(Amendment) Regulations, 2023.
2. These shall come into force on the date of their publication in the official gazette.
3. In the Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2015, as amended
from time to time (hereinafter referred to as 'the principal regulations'), the following amendments are made.
I. In sub-regulation (1) of regulation 1 of the principal regulations, the objective of regulation shall be
substituted as follows:
"The objective of the regulations is establishing, developing and regulating pension funds and protecting the interests
of subscribers."
II. In sub-regulation (1) of regulation 2 of the principal regulations,
i. clause (b) 'Business Day' shall be substituted as follows:
"(b) "business day" means days on which all of the following are operational to transact business-
(i) designated Branch of Trustee Bank;
(ii) stock exchange for equity and bond market; and
(iii) Government securities market;"
ii. clause (c) shall be substituted as follows:
"(c) "compliance officer" means an employee of the pension fund designated as such by the Board of Pension
Fund for compliance of the provisions of the Act, rules regulations, guidelines, circulars, instructions and
directions issued by the Authority;"
iii. after clause (c), the following clause shall be inserted, namely:-
"(cc) "key personnel of the pension fund" shall include the chief executive officer, the chief investment officer,
the chief risk officer, the chief information security officer, the head of operations and compliance officer, any
other person designated by the board of the pension fund and such other personnel of the pension fund as may be
instructed to be so designated, by the Authority;"
iv. clause (d) shall be deleted;
v. after clause (e) the following clause shall be inserted, namely:
"(ea) "pension Scheme" for the purpose of this regulation shall mean the pension scheme defined under section
12 of the Act, and includes Atal Pension Yojana administered by the Authority;"
vi. clause (f) shall be substituted as follows:
"(f) (i) "principal officer of the pension fund" means the board of directors, key personnel and any person in
accordance with whose directions or instructions the board of directors or any one or more directors is or are
accustomed to act as such;
(ii) "principal officer of the sponsor" shall mean its key managerial personnel as defined under section 2(51) of
the Companies Act, 2013;"
vii. clause (g) shall be substituted as follows:
"(g) "networth" shall mean as defined under section 2(57) of the Companies Act, 2013;"
viii. clause (h) the definition of ‘sponsor' shall be substituted as follows:
"(h) "sponsor" means a body corporate who holds twenty per cent. or more of paid-up equity capital in the
pension fund and qualifies the eligibility conditions specified for a sponsor;"
III. Sub-regulation (2) of regulation 2 of the principal regulations shall be deleted;
IV. Regulation 3 of the principal regulations shall be deleted;
V. Regulation 4 of the principal regulations shall be substituted as follows:
"4. Application for registration and application fee.-(1) An applicant desirous to act as a sponsor of a pension
fund, may submit an application as and when the selection process for appointment is initiated by the Authority,
upon fulfilling of:
(a) the eligibility conditions specified under these regulations; and
(b) such other conditions laid down in the selection process whenever initiated.
(2) The application shall be made in the format as provided in the selection process for appointment and
accompanied by a non-refundable application fee along with applicable taxes and levies thereon as specified in
Schedule III."
VI. Regulation 5 of the principal regulations shall be substituted as follows:
"5. Application to conform to requirements.- (1) An application under regulation shall be liable to be rejected
on any of the following grounds: -
(a) is incomplete and does not contain such information as sought by the Authority;
(b) does not conform to the provisions of the Act regulations, guidelines, circulars, directions and other
instructions, issued by the Authority;
(c) is incorrect, false or misleading in nature or omits to disclose material information;
(d) does not fulfil on the date of the application, the eligibility criteria specified under these regulations and as
laid down under the selection process so initiated; or
(e) in the view of the Authority is not in the interest of the public or subscribers or the orderly growth of pension
schemes.
(2) Before rejecting an application on the grounds referred to in sub-regulation (1), the Authority may inform the
applicant to remove the deficiencies within the time provided.
(3) Where the applicant submits false or misleading information or omits to disclose material information, the
application shall be rejected and further no application shall be considered for a period of one year from such
rejection."
VII. Regulation 6 of the principal regulations shall be substituted as follows:
"6. Furnishing of information or clarification.- (1)The Authority may require the applicant to furnish any
additional information or clarification, within the time granted, for consideration of the application.
(2) The applicant shall furnish such information and clarification to the satisfaction of the Authority within the
time granted, including making of presentation to the Authority, if so required.
(3) The applicant shall submit to the Authority any material change in the information furnished during
pendency of the application, within fifteen days of occurrence of such change."
VIII. Regulation 7 of the principal regulations shall be substituted as follows:
"7. Verification of information.- (1) While considering the application, the Authority may verify the
information submitted in any manner including physical verification of documents, office space, infrastructure
and technological capabilities, which the applicant is required to possess.
(2) For the purpose of sub-regulation (1), the Authority may engage the services of any person or instruct any of
its officers to do so."
IX. Regulation 8 of the principal regulations shall be substituted as follows:
"8. Eligibility criteria.- (1) An applicant on the date of its application, shall satisfy the following criteria to act
as a sponsor of a pension fund.-
(a) have at least five years' experience of fund management (comprising of both equity and debt);
(b) is engaged in financial business activity and regulated by Reserve Bank of India, or Securities and Exchange
Board of India, or Insurance Regulatory and Development Authority of India;
(c) intended joint ventures are eligible to apply provided one or more of the joint venture partner(s) fulfil the
eligibility criteria to act as a sponsor on the date of making the application. The applicant(s) while making the
application shall submit a binding memorandum of understanding between the partners of the intended joint
venture, that upon acceptance of the application as sponsor, a pension fund shall be established;
(d) individually or jointly have a positive net worth of at least fifty crore rupees on the last day of each of the
preceding five financial years and at least twenty-five crore rupees of paid-up equity capital on the date of
application;
(e) have profit after tax in at least three of the preceding five financial years and no cash losses in the last
preceding five financial years.
Explanation.- Cash loss means (i) In case of a company preparing its financial statements in accordance with
accounting standards (AS), the figure of net profit/loss after taxes shown by the statement of profit and loss is
adjusted for the effects of transactions of non-cash nature such as depreciation, amortization, and impairment
loss or its reversal. (ii) In case of a company preparing its financial statements in accordance with Indian
accounting standards (Ind AS), the figure of profit or loss (excluding other comprehensive income) shown by the
statement of profit and loss is adjusted for the effects of transactions of non-cash nature such as depreciation,
amortization and impairment loss or its reversal.;
(f) fulfil the additional terms and conditions of the selection process initiated by the Authority; and
(g) the applicant and its principal officer(s) is a 'fit and proper person' as specified in Schedule II.
(2) The sponsor of a pension fund, upon being permitted by the Authority, shall:
(a) incorporate a pension fund as a company under the Companies Act, 2013 and shall have the name 'Pension
Fund' incorporated in its name clause.
Provided that pension fund(s) already registered with Authority shall comply with the provisions of this clause
within a period of twelve months from the date of notification of these amendment to regulations;
(b) ensure that the pension fund maintains a minimum net worth of fifty crore rupees at all times;
(c) ensure that the aggregate holding of equity shares by a foreign company either by itself or through its
subsidiary companies or its nominees or by an individual or by an association of persons whether registered or
not under any law of a country outside India taken in aggregate in the pension fund shall not exceed seventy four
per cent. of the paid-up capital of such fund or such percentage as may be approved for an Indian Insurance
Company under the provisions of the Insurance Act, 1938 (4 of 1938), whichever is higher. The calculation of
foreign investment for this purpose shall be done in accordance with the relevant rules notified by the Central
Government or the regulations, guidelines, circulars, directions and instructions issued by the Authority for the
said purpose;
(d) ensure that the pension fund shall have the ability to provide minimum assured return scheme as per the Act;
(e) ensure that atleast fifty per cent. of the directors of the pension fund are independent directors;
(f) not have control or hold any equity stake directly or through its subsidiary company in any other pension
fund regulated by the Authority.
Explanation: control means as defined under section 2(27) of the Companies Act, 2013;
(g) ensure that no director on the board of a pension fund shall be a director on the board of any other pension
fund registered with the Authority;
(h) not have control or hold twenty per cent. or more equity capital in either the central recordkeeping agency or
custodian or trustee bank;
(i) facilitate the pension fund with necessary infrastructure, dedicated manpower, information technology,
systems and procedures with capabilities to adapt to future changes for undertaking the activity of pension fund.
Provided that the pension fund after twelve months from the date of commencement of business shall perform its
obligations, independently with dedicated manpower, infrastructure, information technology, systems and
procedures;
(j) ensure that atleast fifty per cent. of the directors of the pension fund have professional experience in financial
services and related field;
(k) ensure that the key personnel of pension funds have relevant qualifications and experience in the requisite
fields;
Provided that an officer of the pension fund who is key personnel, may, after approval of the Authority, be
designated to perform the functions of another key personnel; and
(1) ensure that pension fund and its principal officer(s) is a 'fit and proper person' as specified in Schedule II.
(3) An applicant not fulfilling any of the criteria specified in clause(g) of sub-regulation (1) and clause (f) to (1)
of sub-regulation (2), may seek an exemption from the Authority citing reasons therefor.
(4) Nothing in these regulations, shall confer the applicant any right to be granted any exemption sought for.
(5) The Authority may in interest of the subscribers for reasons to be recorded in writing, grant such exemption.
The Authority may in such circumstances impose such additional conditions as it may deem fit for grant of
certificate of registration.
(6) The decision of the Authority, as to whether any applicant satisfies the eligibility criteria shall be final.
(7) Mere submission of an application or satisfaction of eligibility criteria shall not confer the applicant any
vested right to act as a sponsor of a pension fund."
X. Regulation 9 of the principal regulations shall be substituted as follows:-
"9. Procedure for grant of certificate of registration, registration fees and period of validity of certificate
of registration.- (1) An application received in response to the Authority's invitation for selection of sponsor of
a pension fund, shall be evaluated in accordance with the eligibility criteria specified in these regulations and the
selection process as laid down in the guidelines.
(2) (a) The Authority upon being satisfied that the applicant is eligible to be a sponsor of a pension fund, it may,
subject to such terms and conditions, as it may determine, issue a letter of appointment to the applicant to
establish a pension fund.
(b) Upon establishment of the pension fund (by satisfying the eligibility criteria) and on receipt of the non-
refundable registration fee along with applicable taxes and levies thereon from sponsor as specified in Schedule
III, the Authority may grant a certificate of registration to the pension fund in the format as specified in Schedule
I with intimation to the sponsor.
(3) The certificate of registration granted to a pension fund shall remain valid unless suspended or cancelled by
the Authority.
(4) The pension fund shall commence its operations within a period of six months from the date of grant of
certificate of registration. Any extension in the time limit, beyond six months, may be permitted by the Authority
upto another period of six months for reasons to be recorded in writing.
(5) The sponsor shall obtain necessary approvals for establishment and functioning of pension fund from such
authorities, as may be required.”
XI. After Regulation 9 of the principal regulations, the following regulation shall be inserted, namely:-
"9A. Terms and conditions of registration.- (1) The certificate of registration granted to a pension fund shall
be subject to the following conditions, namely.-
(a) the sponsor and the pension fund shall comply at all times with the eligibility requirements as specified under
the Act, rules, regulations, guidelines, circulars, instructions and directions issued by the Authority. Any material
change in the information or particulars previously furnished, which have an adverse bearing on its certificate of
registration shall be informed to the Authority within a period of fifteen days;
(b) the sponsor and the pension fund have taken necessary actions and steps to accept the registration as pension
fund for managing the pension schemes and bind themselves for the due performance of their obligations;
(c) the pension fund shall maintain a minimum net worth of fifty crore rupees;
(d)the sponsor and pension fund shall keep the interest of subscribers' paramount in all matters while managing
the pension schemes and shall avoid any conflict of interest or any undue benefit to sponsors, directors of the
pension fund or associated persons or a special class of subscribers;
(e) the pension fund shall take adequate steps and exercise prudence and due diligence to ensure that the interests
of subscribers are protected;
(f) the pension fund shall execute such agreements with the parties as specified under these regulations or as
directed by the Authority and shall comply with the terms of the agreements so executed;
(g) the pension fund shall maintain confidentiality with respect to all transactions, records, data and information
received while discharging its obligations and shall not, without the prior permission of Authority, produce or
share such data or information as evidence or for any other purpose except as required under the process of law
or as directed by the Authority or the National Pension System Trust;
(h) the sponsor and the pension fund shall comply with the provisions of the Act, the rules, regulations,
guidelines, circulars, directions and instructions issued by the Authority, at all times including, during the period
of suspension of the certificate of registration, as also during the transitory phase of transfer of assets or
documents till completion of all actions as specified under regulation 34;
(i) the pension fund shall ensure the dissemination to Authority, National Pension System Trust, subscriber and
other intermediaries of adequate, accurate, explicit and timely information presented in simple language about
the investment policies, investment objectives, financial position and general affairs of the pension schemes, they
are managing. The pension fund shall communicate requisite information including, as specified in Schedule V
in the format and periodicity as may be determined by the Authority to the subscribers;
(j) the sponsor shall periodically review the desirability or continuance of the pension fund. If substantial
irregularities are observed in any of the pension schemes, sponsor shall immediately report to the Authority of
any special developments in the pension fund;
(k) (i) prior approval of the Authority shall be obtained by the sponsor (or by the entity proposing to become a
sponsor) or pension fund as applicable for change in the shareholding pattern or control in the pension fund
where:
(a) the status as sponsor of pension fund is likely to undergo a change;
(b) the pension fund is likely to cease to be a government company; or
(c) any change (in accordance with guidelines issued) in foreign holding in the pension fund attracting restriction
under Section 24 of the Act;
(ii) prior approval of the Authority shall be obtained by the sponsor and pension fund, as applicable, for proposed
change in its shareholding pattern in excess of five per cent.
Provided that any other change in shareholding pattern of the pension fund, other than the above shall be
informed to the Authority, within seven days by the pension fund;
(iii) any change in key personnel or principal officer of the pension fund shall be reported to the Authority within
fifteen days.
Explanation.— “Government company" shall mean as defined under section 2(45) of the Companies Act, 2013
(18 of 2013);
(1) the pension fund shall comply with the 'Code of Conduct' specified in Schedule VI;
(m)the pension fund shall not delegate any core function to any third party. Delegation of any non-core function
shall be done only with the prior approval of the Authority;
(n) the pension fund shall not engage in any other activity except those relating to pension schemes or funds
regulated by the Authority;
(o) the pension fund shall comply with the cyber security policy, outsourcing policy, common stewardship code,
Prevention of Money Laundering Act (PMLA) to the extent applicable to it, valuation guidelines, broker
empanelment, auditor appointment and voting policy on assets held in the name of National Pension System
Trust, issued by the Authority for the purpose;
(p) the pension fund shall not hold any direct equity stake in any other pension fund regulated by the Authority;
(q) the pension fund shall not have control or hold twenty per cent. or more equity capital in either the central
recordkeeping agency or custodian or Trustee Bank; and
(r) the pension fund shall provide minimum assured return scheme in accordance with the notification of the said
scheme by the Authority."
XII. Regulation 10 of the principal regulations, shall be substituted as follows:
"10. Documentation with intermediaries.- (1) Before commencement of operations, the pension fund shall
inter alia execute the following agreements:-
(a) Investment Management Agreement with the National Pension System Trust as specified in Schedule XI;
(b) Non-Disclosure Agreement with the National Pension System Trust;
(c) agreements with custodian as specified in Schedule IX;
(d) enter into arrangements with central recordkeeping agency and Trustee Bank as specified in Schedule VIII;
and
(e) any other agreement or arrangements with intermediaries as may be specified by the Authority.
(2) In case of any divergence between the intermediaries on the interpretation of the agreements, the same shall
be forwarded for such determination by the Authority, whose decision shall be final and binding.
(3) The pension fund shall obtain necessary approvals from such authorities, under applicable laws and shall
comply with the documentation requirements with other intermediaries pertaining to opening of accounts,
authorizing signatories, obtaining digital signatures, providing connectivity, software installation and other like
matters, so that it suffers no disability under law or otherwise to act as pension fund."
XIII. Regulation 11 of the principal regulations shall be substituted as follows:
"11. Commencement of business.- (1) Upon completion of documentation by the pension fund and other related
activities for commencing its operations, the pension fund shall seek certificate of commencement of business
from the Authority.
(2) At the time of seeking the certificate of commencement of business, pension fund shall warrant that it has the
necessary approvals and permission to act as a pension fund and suffers from no disability in law or otherwise, to
act as such.
(3) The Authority upon being satisfied that the applicant is equipped to commence its operations for
managing the pension schemes, may issue “certificate of commencement of business" to the pension fund in the
format specified in Schedule IV pursuant to which the pension fund shall operationalize its activity(s)."
XIV. Regulation 12 of the principal regulations shall be deleted;
XV. Regulation 13 of the principal regulations shall be substituted as follows:
"13. Annual Fee.- The pension fund shall deposit with the Authority, by 10th day of subsequent month of each
quarter or within ten days of grant of certificate of registration, the annual fee along with applicable taxes and
levies thereon , as specified in Schedule III or as may be determined by the Authority."
XVI. Regulation 14 of the principal regulations shall be substituted as follows:
"14. Schemes and investment guidelines.- (1) The pension fund shall manage the pension schemes in
accordance with the investment guidelines issued by the Authority for the benefit of subscribers.
(2) No pension fund shall, directly or indirectly invest outside India, the funds of subscribers.
(3) There shall not be any implicit or explicit assurance of benefits except under market-based guarantees
mechanism to be purchased by the subscriber.
(4) The subscriber, seeking minimum assured returns, shall have an option to invest his funds in such schemes as
may be notified by the Authority.
(5) The pension fund shall provide an option to subscribers for investing in different asset classes as notified by
the Authority including one hundred per cent. in Government securities."
XVII. Regulation 15 of the principal regulations shall be substituted as follows:
"15. Valuation of scheme assets.- The assets or securities held in the name of National Pension System Trust
and managed by pension funds under the pension schemes shall be valued in accordance with the valuation
guidelines issued by the Authority."
XVIII. Regulation 16 of the principal regulations shall be substituted as follows:
"16. Prudential norms for income recognition, asset classification and provisioning.- (1) In respect of assets
or securities below investment grade, the recognition of income, its classification and provisioning shall be in
compliance with the guidelines issued by the Authority.
(2) The pension fund shall monitor the identified below investment grade assets or securities and initiate
recovery measures for such assets in association with National Pension System Trust and report to the
Authority."
XIX. Regulation 17 of the principal regulations shall be substituted as follows:
"17. Books of accounts and records.- (1) The pension fund shall maintain books and records of the operation of
pension schemes and ensure compliance with the provisions of the Income Tax Act, 1961, the Companies Act,
2013, and any other law and provide information in such mode and manner, as may be determined by the
Authority.
(2) The pension fund shall maintain proper books of accounts, records and documents, for each scheme so as to
give a true and fair view of the state of affairs of the schemes and shall intimate to the Authority and National
Pension System Trust, the place where such books of account, records and documents are maintained, if not
maintained at the registered office of the pension fund. Pension fund shall be solely responsible for the
maintenance and correctness of books of accounts, records and documents.
(3) The pension fund shall follow the accounting policies as determined by the Authority."
XX. Regulation 18 of the principal regulations shall be substituted as follows:
"18. Net asset value (NAV) for schemes.- (1)The face value of each unit of the pension schemes shall be ten
rupees.
(2) The pension fund shall compute the net asset value of each scheme by dividing the net assets of the scheme
by the number of units outstanding as on the date of valuation.
Explanation:- Net assets means value of the scheme assets derived as per valuation guidelines, accruals less
allowable charges (payables/outstanding);
(a) allowable charges shall include:
(i) investment management fees as determined through the selection process;
(ii) custodian fees as determined through the selection process and depository and settlement charges as per
actuals;
(iii) brokerage charges upto 0.03% on equity transactions or as permitted by the Authority;
(iv) National Pension System Trust charges as allowed by Authority; and
(v) applicable taxes and levies thereon.
The methodology for NAV calculation shall be as provided in Schedule XII.
(3) The pension fund shall calculate and declare the NAV of units for each pension scheme at the close of each
business day within the time determined by the Authority.
(4) The pension fund shall create or redeem units at the declared NAV for each business day based on
instructions received from central recordkeeping agency for contributions receipts and redemption requests.
(5) The pension fund shall be responsible for the computation of scheme NAV and its communication to central
recordkeeping agency based on which units are allocated or redeemed to subscribers by central recordkeeping
agency."
XXI. Regulation 19 of the principal regulations shall be substituted with the follows:
"19. Investment management fee.- (1)The pension fund shall be entitled to charge an investment management
fee from the corpus of the pension schemes for the services rendered.
(2) The mode and manner of charging the investment management fee shall be determined by the Authority and
shall be subject to such revision as deemed necessary in subscribers' interest and for orderly growth of the
pension schemes."
XXII. Regulation 20 of the principal regulations shall be substituted as follows:
"20. Annual Report and Auditors Report.- (1) The pension fund shall prepare an annual report in respect of
each financial year as detailed in Schedule VII, in a true and fair manner, in compliance with these regulations
and guidelines issued by the Authority;
The appointment of statutory auditor by the pension fund and scheme auditors by National Pension System Trust
shall be in compliance of the guidelines and circulars issued by the Authority.
(2) The pension fund shall get the financial statements of the pension schemes audited in the manner determined
by the Authority and the auditor's report shall form a part of the annual report of the pension fund. The scheme
auditors shall independently report to the National Pension System Trust.
(3) The pension fund shall
(a) within sixty days from the date of closure of each financial year submit to National Pension System Trust for
approval the annual report (inclusive of financial statements of the pension schemes and auditor report) duly
approved by the board of directors of pension fund. The board of trustees of the National Pension System Trust
shall thereafter approve and counter sign the financial statements of the pension schemes.
(b) resolve the observations of the National Pension System Trust, if any, within a period of fifteen days from the
date of receipt.
(c) submit the annual report to the Authority within ninety days from the date of closure of each financial year.
(4) Every balance sheet and revenue account of the pension schemes shall be in conformity with the Accounting
Standards as notified under Companies Act, 2013, from time to time except AS 3 (Cash Flow Statement) and AS
17 (Segmental Reporting) to the extent applicable to pension schemes and not inconsistent with these
regulations.
(5) The annual report and portfolio details of each scheme shall be prominently placed on the website of the
pension fund after approval of the National Pension System Trust, within ninety days from the date of closure of
each financial year.
(6) The scheme wise annual report or an abridged summary thereof shall be provided by the pension fund to the
central recordkeeping agency for onward transmission to subscribers. The abridged summary to subscribers shall
carry a note that the annual report is available on the website of the pension fund and the weblink page of the
annual report shall be shared with central recordkeeping agency.
(7) The annual report shall be available for inspection at the head office of the pension fund and a copy thereof
shall be made available to any subscriber on payment of such nominal fee, not exceeding two hundred rupees.
(8) The pension fund shall within one month from the close of each half year that is 31st March and 30th
September, disclose its scheme wise unaudited financial statements along with statement of scheme portfolio on
its website.
(9) The half-yearly unaudited report referred in sub-regulation (9) shall contain such details, which are necessary
for the purpose of providing a true and fair view of the operations of scheme, as determined by the Authority.
(10) The annual report of schemes managed by the pension fund shall include Directors' responsibility
statement, certificate by CEO and head of operations, which shall include a declaration in respect of following
key responsibilities:
(a) preparation and presentation of scheme financial statements provide a true and correct view of scheme state
of affairs and scheme NAV;
(b) adequacy and effectiveness of internal financial processes and digital architecture controls;
(c) compliance with Act, rules regulations, Investment Guidelines, Valuation Guidelines, Stewardship code,
voting policy and other applicable laws; and
(d) adherence to Code of Conduct."
XXIII. Regulation 21 of the principal regulations shall be deleted;
XXIV. Regulation 22 of the principal regulations shall be substituted as follows:
"22. Duties and functions of pension fund.- (1)The management of pension schemes shall be carried in
accordance with the objective of the schemes, provisions of the Act, rules, regulations, guidelines, circulars,
directions and instructions issued by the Authority and the provisions of the National Pension System trust deed,
within the timelines determined by the Authority and the National Pension System Trust.
(2) The day-to-day management of the pension schemes shall be done by the pension fund on behalf of the
National Pension System Trust.
(3) The pension fund shall, at all times render high standards of fund management services, exercise reasonable
care, prudence, professional skill, promptness, diligence and vigilance while discharging its duties in the best
interests of the subscribers. The pension fund shall avoid speculative investments or transactions.
(4) The pension fund shall employ qualified, trained professionals and employees with integrity. The pension
fund shall be responsible for the acts of commissions or omissions by its employees, agents or authorised persons
whose services have been procured and be independently accountable and liable for their acts. The liability shall
survive despite the suspension or cancellation of certificate of registration of the pension fund or such action that
may be taken by the Authority, for protection of the interest of the subscribers.
(5) The pension fund shall co-ordinate its activities with other intermediaries and permitted entities and inter alia
enter into agreements, have technological platforms for undertaking its functional obligations.
(6) The pension fund shall maintain books of accounts, records, registers and documents relating to investment
decisions and the operations of the pension schemes to ensure compliance with the regulations, guidelines,
circulars and other instructions issued by the Authority and facilitate audit trail of transactions and ensure
business continuity at all times.
(7) The pension fund shall submit periodical compliance reports as required under these regulations, guidelines
and circulars, or as may be called for by the Authority, or the National Pension System Trust.
(8) The pension fund shall undertake public disclosure of information for the benefit of subscribers in the mode
and manner specified in Schedule V or as may be determined by the Authority.
(9) The pension fund shall adopt best governance practices for investments and risk management viz.
constitution of Investment Committee and Risk Management Committee, whose composition, functions and
duties shall be such as specified in Schedule X and also constitute an Audit Committee, and Nomination and
Remuneration Committee.
(10) The pension fund shall prevent conflict of interest that may arise while discharging its obligations as a
pension fund and report such instances to the National Pension System Trust.
(11) The pension fund shall ensure exclusivity and segregation of pension fund activities from activities of its
sponsors.
(12) The pension fund shall ensure confidentiality with respect to subscribers' information and activities relating
to the pension fund and protection of all information within its control and share such information with the
Authority or National Pension System Trust or any other intermediary or as may be required under the provisions
of any other law.
(13) The pension fund shall provide such representations and warranties and act in accordance with the same, as
may be necessary for the protection of subscribers' interest.
(14) The pension fund shall pay fees, charges, levies and security deposit as may be determined by the Authority.
(15) The pension fund shall be subject to review of its operations and performance by the National Pension
System Trust.
(16) The pension fund shall be subject to audit of pension schemes by the National Pension System Trust.
(17) The pension fund shall be subject to other audit and inspection by the Authority.
(18) The pension fund which is registered as a point of presence (PoP), shall maintain separate infrastructure,
manpower, accounts including details of revenue and expenditure in order to maintain arm's length distance
from its fund management activities.
(19) The pension fund shall comply with the disclosure requirements as applicable to a public company under the
Companies Act, 2013 for adopting best governance practices and the compliance officer shall ensure such
compliance.
(20) Upon notification by the Authority of the scheme under section (20)(2)(d) (b) of the Act, pension fund shall
offer such schemes within the timeline specified by the Authority.
(21) The Pension Fund shall:
(i) take all measures necessary for prevention of fraud, develop and follow a fraud prevention and mitigation
policy in accordance with guidelines issued by Authority;
(ii) lay down internal controls to be followed and ensure that such controls are adequate and operating
effectively; and
(iii) make provision for indemnifying the subscriber for any loss on account of fraud or negligence on the part of
the pension fund, which has been established."
XXV. Sub-regulation (1) of Regulation 23 of the principal regulations shall be substituted as follows:
"23. Monitoring, review and evaluating systems and controls.- (1) The pension fund shall have mechanisms
for reviewing, monitoring and evaluating the controls, systems, procedures and safeguards."
XXVI. Regulation 24 of the principal regulations shall be substituted as follows:
"24. Appointment of compliance officer.- (1)The pension fund shall appoint a compliance officer who shall be
responsible for monitoring the compliance of the provisions of the Act, rules, regulations, guidelines, circulars,
directions and instructions issued by the Authority.
(2) The compliance officer shall immediately and independently report any non-compliance observed to the
Authority and the National Pension System Trust.
(3) The compliance officer shall prepare a compliance certificate stating that pension fund has complied with all
applicable laws and regulations, have such certificate approved by the board of pension fund and submit the
same to the Authority, with observations of the board, if any."
XXVII. Regulation 25 of the principal regulations shall be substituted as follows:
"25. Information to Authority or National Pension System Trust.- (1) The Authority or the National Pension
System Trust may, call for any information from a pension fund.
(2) It shall be the duty of the pension fund to furnish such information within such period as the Authority or the
National Pension System Trust may determine.”
XXVIII. Sub-regulation (1) and (2) of Regulation 26 of the principal regulations shall be substituted as follows:
"26. Inspection and audit.- (1) The Authority shall inspect pension fund at regular intervals as it deems fit.
Notwithstanding the above, it may at any time as it deems fit undertake directly or appoint an auditor or through
its authorized representative conduct an inspection or audit of the books, accounts, records including the call
records and electronic records and documents of a pension fund for the purposes as specified under this
regulation.
(2) The purposes referred to in sub-regulation (1) may include:
(a) ascertaining the infrastructural capabilities, systems and procedures;
(b) ensuring that the books of account, records including electronic records and documents are being maintained
in the manner required under these regulations;
(c) ascertaining whether adequate internal control systems, procedures and safeguards have been established and
are being followed by the pension fund;
(d) ascertaining whether the provisions of the Act, rules, regulations, guidelines, circulars, instructions and
directions issued by the Authority are being complied with;
(e) inquiring into the complaints received from subscribers, intermediaries, or any other person on any matter
having a bearing on the activities of the pension fund; or
(f) inquiring suo motu into such matters as may be deemed fit in the interest of subscribers."
XXIX. Regulation 27 of the principal regulations shall be substituted as follows:
"27. Notice before inspection or audit.- (1) Before undertaking an inspection or audit under this chapter, the
Authority or its authorized representative or the auditor shall give ten working days' notice to the pension fund.
Provided that no notice shall be required if the Authority is satisfied that an inspection or audit is for immediate
safe guarding of the interest of the subscribers.
(2) During the course of an inspection or audit, the pension fund, whose inspection or audit is being carried out,
shall continue to discharge its obligations as provided in these regulations.”
XXX. Sub-regulation (1) of regulation 28 of the principal regulations shall be substituted as follows:
"28. Obligations on inspection and audit.- (1) It shall be the duty of the pension fund, which is being inspected
or audited, and of every director, officer and employee thereof, to produce to the Authority, or its authorized
representative or auditor, such books, accounts, records and other documents in its custody or control and furnish
such statements and information relating to its activities, within such time as may be provided."
XXXI. Regulation 29 of the principal regulations shall be substituted as follows:
"29. Procedure of audit.- The manner in which the internal audit, scheme audit, concurrent audit and other
audits of the pension fund shall be conducted will be as determined by the Authority."
XXXII. In regulation 30 of the principal regulations after sub-regulation (2), a new sub-regulation (3) shall be
inserted as follows:
"(3) The report submitted by the authorized person or any documents or information so collected by such person,
during the course of inspection or audit, would be admissible in any investigation or inquiry or any other
proceedings before the Authority."
XXXIII. Regulation 33 of the principal regulations shall be substituted as follows:
"33. Cancellation or suspension of certificate of registration.- (1) Where a pension fund or its sponsor:-
(a) fails to comply with any of the terms and conditions of the certificate of registration or the letter of
appointment as the case may be;
(b) contravenes the provisions of the Act, rules, regulations, guidelines, circulars, instructions and directions
issued;
(c) has its business transferred to or amalgamated with another pension fund or sponsor without the prior
approval of the Authority;
(d) commits any acts of defaults as mentioned under section 28 of the Act;
(e) fails to pay the fee payable to the Authority along with applicable taxes;
(f) ceases to carry on activity or voluntarily applies to withdraw the certificate of registration granted by the
Authority;
(g) fails to observe or perform any representation, warranty or undertaking given by it or fails to correct any
breach or failure within the timeliness provided by the Authority to do so;
(h) indulges in unfair trade practices or fraudulent practices or conducts its business in a manner prejudicial to
the orderly growth of the pension schemes or adversely affecting the interests of subscribers;
(i) does not co-operate in any inquiry conducted by the Authority;
(j) submits to the Authority a false statement or information which has a material effect on the rights, obligations
or interests of the Authority or the subscribers or any intermediary;
(k) does not submit periodical returns as required by the Authority;
(1) fails to furnish any information as required by the Authority relating to its pension activity;
(m)undergoes a change in the ownership, management or key personnel which in the opinion of the Authority
adversely affects the interest of the subscribers;
(n) generates returns significantly and consistently below market or peer benchmarks;
(o) fails to honour the guarantee assured to subscriber under the minimum assured return scheme referred to
under section 20(2)(d)(b) of the Act; or
(p) fails to comply with any directions issued by the Authority in the interest of the subscribers or the orderly
growth of the pension scheme.
(2) The Authority may, by order, without prejudice to any other action, suspend or cancel the certificate of
registration, or pass any order or direction, as may be deemed appropriate.
(3) No order of suspension or cancellation of registration shall be made unless the person concerned has been
given a reasonable opportunity of being heard under an inquiry conducted as per the regulations."
XXXIV. After Regulation 33 of the principal regulations, the following regulation shall be inserted, namely:- :
"33A. Surrender of certificate of registration.- (1) A pension fund may surrender its certificate of registration
by making a request to the Authority.
(2) For consideration of such request, the Authority may require the pension fund to satisfy the following—
(a) arrangements made by it for transfer of records, funds or securities of the subscribers as directed by the
Authority, at its own cost and expense and ensure continuity of service to subscribers;
(b) rectifying the defaults and pending actions, if any;
(c) redressal of subscriber grievances; and
(d) any other measures to be taken in the interest of the subscribers.
(3) While considering the request for surrender, the Authority may impose such conditions upon the pension
fund as it deems fit for the protection of interest of the subscribers.
(4) No request for surrender shall be entertained from a pension fund in respect of which any investigation,
inquiry or adjudication has been initiated or is contemplated by the Authority.
(5) No surrender shall be permitted unless the Authority is satisfied that the pension fund has complied with or
has taken steps to comply with the requirements under sub-regulation (2) and other conditions, if any, under sub-
regulation (3).
(6) Where the Authority has accepted the request for surrender, it shall cancel the certificate of registration
granted to the pension fund and the letter of appointment issued to sponsor and inform them within seven
working days and place such information on its website and also direct the entity to place the information on its
website and disseminate the information, in such manner, as may be required."
XXXV. Regulation 34 of the principal regulations shall be substituted as follows:
"34. Effect of suspension or cancellation of certificate.- (1) On and from the date of suspension of the
certificate of registration, the pension fund shall, where directed-
(a) cease to transact fresh business under the National Pension System or other pension schemes, as the case may
be;
(b) take such action in respect of the assets, records, documents or information that may be in the custody or
control of the pension fund, within the time limit and in the manner as may be required under the relevant
regulations or as may be directed by the Authority;
(c) transfer at its own cost the assets, records, documents or information that are in its custody or control to
another pension fund in the form and manner as may be directed by the Authority;
(d) the pension fund or sponsor where applicable shall at its cost and expense provide all the necessary support in
ensuring smooth transfer of all the assets under its management and where required by the National Pension
System Trust or the Authority, make such public announcement or disclosure as may be conducive to
subscriber's interest, regarding such transfer of assets. It shall also ensure that the transfer of all the relevant
documents, record or information is made in accordance with the directions issued by the Authority;
(e) the transfer of such assets shall be undertaken in accordance with the guidelines or instructions that may be
issued by the Authority; and
(f) the sponsor or pension fund shall be subject to the directions of the Authority until all such transfers or
actions are completed or until, the certificate of registration remains suspended.
(2) On and from the date of cancellation of the certificate of registration, the concerned pension fund shall-
(a) cease to carry on and wind up its affairs qua the activities in respect of which registration has been granted;
(b) return the certificate of registration so cancelled to the Authority and inform such other agencies, as may be
directed by the Authority with regard to the said fact and disseminate the information on its website and in such
other manner as may be directed;
(c) carry out any other directions within the time limits given by the Authority, and report compliance of the
same; and
(d) make provisions as regards liability incurred or assumed by it."
XXXVI. In Schedule I (Certificate of Registration) of the principal regulations, the symbols, words and
numerals,
i. "regulation 3(1)" shall be substituted with “regulation 9(2)(b)"; and
ii. "See regulations 9(2)” shall be substituted with “see regulation 9(2)(b)".
XXXVII. Schedule II (CRITERIA FOR ‘FIT and PROPER') of the principal regulations, shall be substituted as
follows:-
"SCHEDULE II
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
(PENSION FUND) REGULATIONS, 2015
[see regulations 8(1)(g) & 8(2)(1)]
CRITERIA FOR 'FIT AND PROPER'
For determining whether the applicant or the sponsor or the pension fund or their principal officer is a 'fit and proper
person', the Authority may take into account any factors as it deems fit, including but not limited to the following
criteria:
(Part-A)
(a) financial integrity;
(b) absence of convictions or civil liabilities;
(c) competence;
(d) good reputation and character;
(e) efficiency and honesty; and
(f) financial solvency and net worth.
(Part-B)
A person shall not be considered as a" fit and proper person" if any of the following disqualifications are incurred:-
(1) criminal complaint or information under section 154 of the Code of Criminal Procedure, 1973 (2 of 1974) has
been filed against such person by the Authority and which is pending;
(2) charge sheet has been filed against such person by any enforcement agency in matters concerning economic
offences and is pending;
(3) an order of restraint, prohibition or debarment has been passed against such person by the Authority or any
financial regulator or enforcement agency in any matter concerning securities laws or financial markets or
insurance law and a period of three years from the date of expiry of period specified in the order has not
elapsed;
(4) license or registration has been cancelled by any financial sector regulators during last five years;
(5) recovery proceedings have been initiated by the Authority against such person and are pending;
(6) an order of conviction has been passed against such person by a court for any offence involving moral turpitude
or involving economic offences or fraud;
(7) any winding up proceedings have been initiated or an order for winding up has been passed against such person;
(8) any insolvency proceeding is pending against such person or where he has been declared insolvent and not
discharged;
(9) such person has been found to be of unsound mind by a court of competent jurisdiction and the finding is in
force;
(10) such person has been categorized as a willful defaulter;
(11) such person has been declared a fugitive economic offender;
(12) there is an order or notice of any action or investigation or other proceedings of any nature whatsoever, against
the person by any governmental or statutory authority which would restrain, prohibit or otherwise challenge or
impede the performance of obligations and that there is adverse proceedings against it from any financial sector
regulator including the Reserve Bank of India, Insurance Regulatory and Development Authority or the
Securities and Exchange Board of India, of a nature that could adversely affect the ability to provide the
services as sponsor; or
(13) any other disqualification as may be specified by the Authority."
XXXVIII. PART A of Schedule III (Fees payable under the regulations) of the principal regulations
shall be substituted as follows:
"SCHEDULE III
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (PENSION FUND)
REGULATIONS, 2015
[see regulations 4(2), 9(2)(b) and 13]
FEES PAYABLE UNDER THE REGULATIONS
PART A
AMOUNT TO BE PAID AS FEES
+-----+-------------+---------------------------------------+----------------------+----------------------------------------------------------+
| S   | Type of fee | Amount                                | Nature and calculation | Time of payment                                          |
| No  |             |                                       |                      |                                                          |
+=====+=============+=======================================+======================+==========================================================+
| 1.  | Application | Rs 10,00,000 along with               | Non-Refundable       | At the time of submission of                             |
|     | Fee         | applicable taxes and levies thereon   | Flat Rate            | application for acting as                                |
|     |             |                                       |                      | sponsor of pension fund                                  |
+-----+-------------+---------------------------------------+----------------------+----------------------------------------------------------+
| 2.  | Registration| Rs 25,00,000 along with               | Non-Refundable       | At the time of grant of                                  |
|     | fee         | applicable taxes and levies thereon   | Flat Rate            | certificate of registration                              |
+-----+-------------+---------------------------------------+----------------------+----------------------------------------------------------+
+-----+-------------+-------------------------------------------------------------+-----------------------+---------------------------------------------------------------------------------------------------------------------------------+
| 3.  | Annual fee  | As determined by the Authority                              | Non-Refundable        | By 10th day of subsequent                                                                                                       |
|     |             | from time to time, subject to                               | % of AUM              | month of each quarter or                                                                                                        |
|     |             | minimum Rs 10,00,000 per annum                              |                       | within ten days of grant of                                                                                                     |
|     |             | (Rs 2,50,000 per quarter or part                            | The amount of assets  | certificate of registration,                                                                                                    |
|     |             | thereof), along with applicable                             | under management      | payable on quarterly basis.”                                                                                                    |
|     |             | taxes and levies thereon.                                   | shall be considered   |                                                                                                                                 |
|     |             |                                                             | on the last day of    |                                                                                                                                 |
|     |             |                                                             | preceding quarter     |                                                                                                                                 |
+-----+-------------+-------------------------------------------------------------+-----------------------+---------------------------------------------------------------------------------------------------------------------------------+
XXXIX. In Schedule IV (CERTIFICATE FOR COMMENCEMENT OF BUSINESS) of the principal
regulations, the words “CERTIFICATE FOR COMMENCEMENT OF BUSINESS” shall be substituted with
"CERTIFICATE OF COMMENCEMENT OF BUSINESS".
XL. In Schedule V (Reports and Disclosure) of the principal regulations, the symbols, words and numerals,
"See regulations 12(h) and 22(8)" shall be substituted with "see regulations 9A(1)(i) and 22(8)".
XLI. In Schedule VI (Code of Conduct) of the principal regulations, the symbols, words and numerals, "See
regulations 12(k) and 21” shall be substituted with "see regulation 9A(1)(1)”.
XLII. After clause (d) in Part III (DISCLOSURE OF INFORMATION) in Schedule VI (CODE OF
CONDUCT) of the principal regulations, a new clause (e) shall be inserted, namely.-
"(e) A pension fund shall disclose the scheme returns in the manner and in the format as available in public
domain hosted by National Pension System Trust. For the purpose of scheme performance comparison amongst
its peers, pension fund shall use the returns for only those dates for which returns are published by National
Pension System Trust and shall disclose the returns of all pension funds. In case of pension fund desires to
disclose returns of its own scheme only, in such case benchmark return for the scheme shall also be disclosed
and no ranking amongst its peers shall be provided".
XLIII. Schedule VII (FINANCIAL STATEMENTS AND AUDIT REPORT) of the principal regulations shall
be substituted as follows:
"SCHEDULE VII
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
(PENSION FUND) REGULATIONS, 2015
[See regulation 20]
FINANCIAL STATEMENTS AND AUDIT REPORT
ANNUAL REPORT
(1). Annual Report
The annual report shall contain—
(i) Report on the operations of each scheme during the financial year and economic scenario;
(ii) Brief statement on the following aspects, namely:-
(a) Liabilities and responsibilities of the pension fund;
(b) Investment objective of each scheme;
(c) Basis and policy of investments underlying the scheme;
(d) Valuation of scheme investments
(e) Comments on the performance of the scheme with comparison with specified benchmark.
(iii) Abridged version of Balance Sheet and Revenue account as per para VII of the Schedule
(iv) Directors' Responsibility Statement as per Para VI in relation to Scheme
(v) Consolidated financial statements of all schemes managed by the pension fund
(vi) Accounting Policies as per Para IX of this schedule
(vii) Balance Sheet and Revenue Account in accordance with Paras II and III of this Schedule;
(viii) Auditor's Report in accordance with Para IV of this Schedule;
(ix) Statement giving "key statistics" of schemes in accordance with Para V of this Schedule
(x) Notes to account as per Para VIII of this schedule.
(II). Contents of Balance Sheet:
(i) The Balance Sheet shall give scheme wise particulars of its assets and liabilities. It shall also disclose, inter alia,
accounting policies, valuation of investments and other important areas.
(ii) The balance-sheet shall disclose under each type of investment, the aggregate carrying value and market value of
assets below investment grade.
(iii) The Balance Sheet shall disclose the per unit Net Asset Value (NAV) as at the end of the accounting year.
(iv) The Balance Sheet shall give against each item, the corresponding figures as at the end of the preceding financial
year.
(v) The notes to the Balance Sheet shall disclose the following information regarding investments:-
(a) all investments shall be grouped under the major classification given in the balance sheet;
(b) under each major classification, the total value of investments falling under each major industry group (which
constitutes not less than 5 per cent. of the total investment in the major classification) shall be disclosed
together with the percentage thereof in relation to the total investment within the classification;
(c) a statement of investments showing the name of the companies in which investments have been made and the
aggregate investments made in the associates and group companies of the pension fund, if any;
(d) if brokerage, custodial fees or any other charges for services are paid to or payable to any entity in which the
PF or its major shareholders have a substantial interest (being not less than 10% of the paid up capital), the
amounts debited to the Revenue Account or amounts treated as cost of investments in respect of such
services shall be separately disclosed together with details of the interest of the pension fund or its major
shareholders;
(e) the basis on which fees have been paid to pension fund and the computation thereof;
(f) aggregate value of purchases and sales of investments excluding temporary deployment of funds during the
year and expressed as a percentage of average daily net asset value;
(g) movement in unit capital shall be stated;
(h) the total income of the scheme shall include unrealised depreciation or appreciation on investments.
(vi) Provisions on account of investments classified as default shall not be included under provisions on the liability
side of the balance sheet, but shall be shown as a deduction from the aggregate value of its relevant asset.
(vii) Disclosure shall be made of all contingent liabilities showing separately uncalled liability on partly paid shares
and other commitments with specifying details.
Major Headings of Balance Sheet
ASSETS SIDE OF THE BALANCE SHEET:
The assets of the balance sheet shall be grouped into the following categories:
• Investments
• Deposits
• Other Current Assets
Schedule of the Categories:
I. INVESTMENTS
The following types of investments shall be separately disclosed (only those heads under which investments is
permitted to be kept):
(i) Equity shares;
(ii) Preference shares;
(iii) Debentures and Bonds;
(iv) Central and State Government Securities including bonds guaranteed/fully serviced by Government;
(v) Commercial Paper;
(vi) Treasury Bills
(vii) AIF's (Category I and Category II Only)/REITs/INVITs/Asset Backed Securities/ mortgage based securities
(viii) Basel III Tier I Bonds
(ix) Others-Mutual Funds, TREPS etc.
II. DEPOSITS
(i) Deposits with scheduled banks;
(ii) Others
III. OTHER CURRENT ASSETS
(i) Balances with banks in current/savings account;
(ii) Cash in hand;
(iii) Sundry Debtors;
(iv) Contracts for sale of investments;
(v) Outstanding and accrued income;
(vi) Advance, Deposits etc.;
(vii) Shares/debentures/ others application money pending allotment (for this age wise disclosure is to be made along
with security name);
(viii) Dividend Receivable
(ix) Redemption receivable on investments classified as default
Less: Provision for assets investments classified as default
(x) Others.
LIABILITIES SIDE OF THE BALANCE SHEET
The Liabilities side of the balance sheet shall be divided into the following groups
• Unit Capital;
• Reserves & Surplus;
• Current Liabilities and Provisions.
Schedule of the Categories:
I. Unit Capital
(i) Initial capital;
(ii) Unit capital (including number of units and face value per unit).
II. Reserves & surplus
(i) Unit Premium Reserve;
(ii) General reserve;
(iii) Any other reserve (disclosing its nature) including Unrealised Appreciation account;
Opening balance, transfer from/to reserve, closing balance shall be separately disclosed for each above type of
reserve.
III. Current liabilities and provisions
Distinguishing between the following current liabilities and provisions
Current liabilities:
(i) Sundry creditors;
(ii) Contract for purchase of investments;
Provisions (Indicate nature):
(i) Redemption payable
(ii) TDS payable
IV. Contingent Liabilities
(i) Commitments
(ii) Others (specify details)
(III). Contents of Revenue Account:
(i) The Revenue Account shall give scheme wise particulars of the income, expenditure and surplus for each
scheme.
(ii) If profit on sale of investments shown in the Revenue Account includes profit/loss on inter-scheme transfer
of investments within the same pension fund the aggregate of such profit recognised as realised, shall be
disclosed separately without being clubbed with the profit/loss on sale of investments to third parties.
(iii) The Revenue Account shall indicate the appropriation of surplus/deficit by way of transfer to reserves on a
net basis.
(iv) The following disclosures shall also be made in the Revenue Account:
(a) provision for aggregate value on account of investments classified as default, outstanding and accrued
income;
(b) custodian, NPS Trust, Trustee Bank and central recordkeeping agency charges
(c) depository and settlement charges, stamp duty and brokerage on equity transactions
(d) Total income and expenditure expressed as a percentage of average net assets, calculated on a daily
basis.
Major Headings of Revenue Account
Income:
- Dividend;
- Interest;
Profit on sale/redemption of investments (other than inter-scheme transfer/sale);
- Profit on inter-scheme transfer/sale of investments;
Unrealized gain on appreciation in investments
Other income (indicating nature).
Expenses and losses:
- Unrealized losses in value of investments
- Provision for investments classified as default;
- Loss on sale/redemption of investments (other than inter-scheme transfer/sale);
- Loss on inter-scheme transfer/sale of investments;
- Investment Management fees;
- NPS Trust reimbursement of expenses;
- Depository and Settlement charges;
- Brokerage on equity transactions
Stamp Duty
Custodian fees;
- Central recordkeeping agency fees
Less: Amount recovered by sale of units for central recordkeeping agency charges
Others
Note:
Accounting policy in respect of recognition of revenue and income from investments (including dividend and interest)
shall be disclosed by way of a note.
(IV). Scheme Auditor's Report
(i) The auditor shall state whether;-
(a) he has obtained all information and explanations which, to the best of his knowledge and belief, were
necessary for the purpose of his audit;
(b) the Balance Sheet and the Revenue Account are in agreement with the books of account of the scheme;
(c) whether proper books of accounts of each scheme have been maintained;
(d) all transaction expenses in excess of the limits contractually agreed to/approved by Authority are borne by
the pension fund and are not charged to the Net Asset Value;
(e) The Balance Sheet and Revenue Account of the Scheme dealt with by this Report comply with these
regulations and the Accounting Standards notified under the Companies Act, to the extent made applicable
by the regulations.
(ii) The auditor shall give his opinion as to whether;-
(a) the Balance Sheet gives a true and fair view of the scheme wise state of affairs of NPS/APY at the end of the
financial year,
(b) the Revenue Account gives a true and fair view of the scheme wise surplus/deficit of NPS/APY for the
financial year.
(iii) The Auditor shall further certify that;-
(a) Investments have been valued in accordance with the guidelines issued by the Authority;
(b) Transaction and claims/ fee raised by different entities are in accordance with the
guidelines issued by the Authority;
(iv) The Auditor shall also submit a separate report called as "NPS Scheme - Detailed Audit Report" (to be
referred as NPS-DAR) along with the scheme audit report / scheme accounts for a particular financial year. A
copy of the said Audit Report should be given to the Board of Pension Fund. The contents of the report
would be based on the format prescribed by Authority/NPS Trust. The Board of Directors of Pension Fund
should submit a Compliance Report within two months of the receipt of Detailed Audit Report. NPS-DAR
will be a combined report for all the NPS Schemes. The Auditor will give a certificate in the following
format;
To
The Board of Trustees
National Pension System Trust
New Delhi
We have conducted the Detailed Audit of under mentioned schemes of National Pension System of
______________________ (The 'Pension Fund') for the Period/Year ________ as per the check list provided
to us by the National Pension System Trust and hereby submit the NPS-DAR for your perusal.
+-----------------+-----------------------------------+
| Schemes         | Year/Period                       |
+=================+===================================+
| Scheme Name     | From 1st April ...to 31st March ... |
| Scheme Name     | From 1st April ...to 31st March ... |
| Scheme Name     | From 1st April ...to 31st March ... |
| Scheme Name     | From 1st April ...to 31st March ... |
| Scheme Name     | From 1st April ...to 31st March ... |
| Scheme Name     | From 1st April ...to 31st March ... |
| Scheme Name     | From 1st April ...to 31st March ... |
+-----------------+-----------------------------------+
We report as under:
1. We have obtained all the information and explanations which, to the best of our knowledge and belief, were
necessary for the purpose of our audit.
2. In our opinion, proper books of accounts has been maintained for each scheme.
3. Our procedures covered all the areas listed in the recommended NPS-DAR Checklist (Enclosed, duly signed by
us under reference to this certificate.)
4. Further, all deviations with regards to applicable accounting principles, regulations and guidelines for
preparation of accounts are being disclosed in the attached report.
Based on our test checking of the records maintained by the pension fund, we certify as under:
1. The system, procedures and safeguards followed by the pension fund are adequate.
2. The terms and conditions of registration of Pension Fund regulations, Investment Management Agreement
signed with the National Pension System Trust are being complied with by the Pension Fund.
3. Directions issued by the Authority from time to time or any other statutory requirements have been followed.
4. Affairs of the pension fund are being conducted in a manner which is in the interest of the subscribers.
5. All transaction expenses in excess of the limits contractually agreed to / approve by Authority are borne by the
pension fund and are not charged to NAV.
Yours truly
For
....... (Name of Firm)
Chartered Accountants
Firm Regn No...
....... (Name of Partner)
Partner
Membership No:
Place:
Date:
(V). Key Statistics
Name of the Pension Fund :
Key Statistics for the year / period ended ______________
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| Particulars                                   | Scheme A        |                  | Scheme B        |                  |
+===============================================+=================+==================+=================+==================+
|                                               | As at           | As at            | As at           | As at            |
|                                               | Current Year    | Previous Year    | Current Year    | Previous Year    |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| 1. NAV per unit (Rs.):                        |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| Open                                          |                 |                  |                 |                  |
| High                                          |                 |                  |                 |                  |
| Low                                           |                 |                  |                 |                  |
| End                                           |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| 2. Closing Assets Under Management (Rs. in    |                 |                  |                 |                  |
|    Lakh)                                      |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| End                                           |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| Average Assets Under Management (AAuM)        |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| 3.Gross income as % of AAuM                   |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| 4. Expense Ratio:                             |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| a. Total Expense as % of AAuM (scheme wise)   |                 |                  |                 |                  |
| b. Management Fee as % of AAuM (Scheme        |                 |                  |                 |                  |
|    wise)                                      |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| 5. Net Income as a percentage of AAuM         |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| 6. Portfolio turnover ratio                   |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| 7. Returns: (%)                               |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| a. Last One Year                              |                 |                  |                 |                  |
| Benchmark                                     |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| b. Since Inception (provide scheme launch date)|                 |                  |                 |                  |
| Benchmark                                     |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| c. Compounded Annual Growth Rate (%)          |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
| Last 3 years                                  |                 |                  |                 |                  |
| Last 5 years                                  |                 |                  |                 |                  |
| Last 10 years                                 |                 |                  |                 |                  |
+-----------------------------------------------+-----------------+------------------+-----------------+------------------+
1. Gross income = amount against (A) in the Revenue account i.e. Income.
2. Net income = amount against (C) in the Revenue account i.e. NET REALISED GAINS / (LOSSES) FOR
THE YEAR / PERIOD
3. Portfolio Turnover = Lower of sales or purchase (excluding temporary deployment) divided by the Average
AUM for the year/period.
4. AAUM=Average daily net assets
5 'Compounded Annual Growth Rate is to be calculated based on the following formula: % = (1 + cumulative
return) i/n -1 (where n = 365/no. of days and i is the period)
6. NAV= (Market value of Investments held by scheme + value of current assets - value of current liability
and provisions, if any) / (no. of units at the valuation date (before creation/ redemption of units)
7. Benchmark = Scheme Benchmark Returns as disclosed by NPS Trust for scheme performance evaluation
(VI). Directors Responsibility Statement
The Directors, Chief Operating Officer/Head of Operations of the Pension Fund shall certify that:-
1. The Scheme Financial Statements have been prepared in accordance with the PFRDA (Pension Fund)
Regulations, 2015 and guidelines issued by the Authority
2. In the preparation of the annual scheme accounts, the applicable accounting standards have been followed to
the extent made applicable by the regulations along with proper explanations relating to material departures;
3. The accounting policies have been selected/applied consistently and have made judgments that are
reasonable and prudent so as to give a true and fair view of the state of affairs of the Schemes managed by
the PF for the financial year ended 31st March, 20XX and of the surplus/deficit of the Schemes for that
period;
4. Proper and sufficient care has been taken to maintain the accounting records in accordance with the
provisions of the PFRDA Act, 2013 and underlying regulations / guidelines for safeguarding the assets of the
Scheme, subscribers and for preventing and detecting fraud and other irregularities;
5. Internal financial controls have been laid down and are being followed for the Scheme, operations and that
such internal controls are adequate and are operating effectively; and
6. Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that
such systems are adequate and operating effectively.
(VII). ABRIDGED BALANCE SHEET AND REVENUE ACCOUNT FORMAT
ABRIDGED BALANCE SHEET
Name of the Pension Fund :
Key Statistics for the year / period ended ______________
+----------------------------------------+-----------------+------------------+-----------------+------------------+
| Particulars                            | Scheme A        |                  | Scheme B        |                  |
+========================================+=================+==================+=================+==================+
|                                        | As at           | As at            | As at           | As at            |
|                                        | Current Year    | Previous Year    | Current Year    | Previous Year    |
+----------------------------------------+-----------------+------------------+-----------------+------------------+
| LIABILITIES                            |                 |                  |                 |                  |
+----------------------------------------+-----------------+------------------+-----------------+------------------+
| 1 Unit Capital                         |                 |                  |                 |                  |
+----------------------------------------+-----------------+------------------+-----------------+------------------+
| 2 Reserves & Surplus                   |                 |                  |                 |                  |
| 2.1 Unit Premium Reserve               |                 |                  |                 |                  |
| 2.2 General Reserve                    |                 |                  |                 |                  |
| 2.3 Unrealised Appreciation Reserve    |                 |                  |                 |                  |
| 2.4 Others                             |                 |                  |                 |                  |
+----------------------------------------+-----------------+------------------+-----------------+------------------+
| TOTAL                                  |                 |                  |                 |                  |
+----------------------------------------+-----------------+------------------+-----------------+------------------+
| ASSETS                                 |                 |                  |                 |                  |
+----------------------------------------+-----------------+------------------+-----------------+------------------+
| 1 Investments                          |                 |                  |                 |                  |
| 1.1 Equity                             |                 |                  |                 |                  |
| 1.2 Debenture/Bonds                    |                 |                  |                 |                  |
| 1.3 Alternate Investments              |                 |                  |                 |                  |
| 1.4 Government Securities              |                 |                  |                 |                  |
| 1.5 Money Market                       |                 |                  |                 |                  |
| 1.6 Others                             |                 |                  |                 |                  |
| 1.7 Total Investments                  |                 |                  |                 |                  |
+----------------------------------------+-----------------+------------------+-----------------+------------------+
| 2 Other Current Assets                 |                 |                  |                 |                  |
| 2.1 Cash & Bank Balance                |                 |                  |                 |                  |
| 2.2 Others                             |                 |                  |                 |                  |
+----------------------------------------+-----------------+------------------+-----------------+------------------+
ABRIDGED REVENUE ACCOUNT
Name of the Pension Fund :
Key Statistics for the year / period ended ______________
+-------------------------------------------------+-----------------+------------------+-----------------+------------------+
|                                                 | Scheme A        |                  | Scheme B        |                  |
+=================================================+=================+==================+=================+==================+
|                                                 | As at           | As at            | As at           | As at            |
|                                                 | Current Year    | Previous Year    | Current Year    | Previous Year    |
+-------------------------------------------------+-----------------+------------------+-----------------+------------------+
| 1 INCOME                                        |                 |                  |                 |                  |
| 1.1 Dividend                                    |                 |                  |                 |                  |
| 1.2 Interest                                    |                 |                  |                 |                  |
| 1.3 Realised Gains on inter-scheme transfers    |                 |                  |                 |                  |
| 1.4 Realised Gains on sale / redemption of investments |                 |                  |                 |                  |
| 1.5 Other Income                                |                 |                  |                 |                  |
| Sub-Total (A)                                   |                 |                  |                 |                  |
+-------------------------------------------------+-----------------+------------------+-----------------+------------------+
| 2 EXPENSES                                      |                 |                  |                 |                  |
| 2.1 Realised Losses on Inter scheme transfer    |                 |                  |                 |                  |
| 2.2 Realised Losses on sale / redemption of investments |                 |                  |                 |                  |
| 2.3 Investment Management fees                  |                 |                  |                 |                  |
| 2.4 Custodian fees                              |                 |                  |                 |                  |
| 2.5 NPS Trust expense reimbursement             |                 |                  |                 |                  |
| 2.6 Other operating expenses                    |                 |                  |                 |                  |
| Sub-Total (B)                                   |                 |                  |                 |                  |
+-------------------------------------------------+-----------------+------------------+-----------------+------------------+
| 3 NET REALISED GAINS/(LOSSES) FOR THE PERIOD    |                 |                  |                 |                  |
|   (A -B = C)                                    |                 |                  |                 |                  |
+-------------------------------------------------+-----------------+------------------+-----------------+------------------+
| 4 Net Change in Unrealised Depreciation/ appreciation in |                 |                  |                 |                  |
|   value of investments                          |                 |                  |                 |                  |
+-------------------------------------------------+-----------------+------------------+-----------------+------------------+
| 5 NET SURPLUS / (DEFICIT) FOR THE PERIOD        |                 |                  |                 |                  |
+-------------------------------------------------+-----------------+------------------+-----------------+------------------+
Notes to Accounts as specified below
Guidance Note
1. Provide details of significant items indicating nature & corresponding amount in Notes to accounts.
2. Unrealised Depreciation/Appreciation to be computed by each asset category and shown on an aggregated basis.
This should take into account change in unrealised depreciation/ appreciation for the year/period and write back of
unrealised depreciation/ appreciation provided in the previous year end.
(VIII). NOTES TO ACCOUNTS - ANNEXURE TO THE BALANCE SHEET AND REVENUE ACCOUNT
Name of the scheme :
Notes to Accounts - Annexure to the Abridged Balance Sheet and Revenue Account for the Year / Period ended
+-----+----------------------------------------------------------------------------------------------------+
| SI  | Particulars                                                                                        |
+=====+====================================================================================================+
| 1   | Investments:-                                                                                      |
|     | 1.1. Note confirming that Investments of the Schemes are in the name of the National Pension System Trust. |
|     | 1.2. Open Position of derivatives (outstanding market value & % to Net Assets as of the Year end). |
|     | 1.3. Investments in Associates and Group Companies (provide details of issuer, nature of investments, amount, |
|     |      aggregate investments under all scheme managed)                                               |
|     | 1.4. Open position of Securities Borrowed and / or Lend by the scheme.                             |
|     | 1.5. Details of investments rated as below investment grade and/or classified as default (provide details of issuer, |
|     |      nature of investment, purchase cost, value of investment (after haircut), amount of provision held, amount of |
|     |      haircut applied on accrued interest, amount received (interest & principal) for above investment) |
|     | 1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial Year / Period and percentage to net assets. |
|     | 1.7. Aggregate Value of Purchase and Sale (excluding temporary deployment of funds) with Percentage to |
|     |      average assets under management.                                                              |
+-----+----------------------------------------------------------------------------------------------------+
| 2   | Details of Transaction with Associates and Group Companies (provide details of name of associate, nature of |
|     |      payment and amount)                                                                           |
+-----+----------------------------------------------------------------------------------------------------+
| 3   | Unit Capital movement during the year ended / period ended. Scheme wise details of movement in units - |
|     |      opening, subscription, redemption, closing. Indicate scheme wise face value of units.         |
+-----+----------------------------------------------------------------------------------------------------+
| 4   | Prior Year Comparison - a suitable statement that prior year figures have been reclassified whenever necessary |
|     |      to conform to current years' presentation.                                                    |
+-----+----------------------------------------------------------------------------------------------------+
| 5   | Contingent Liability. Provide details of nature and amount.                                        |
+-----+----------------------------------------------------------------------------------------------------+
Guidance Note:
Provide corresponding previous year/period figures for all the above disclosures.
(IX). Accounting Policies
The Accounting Policies related to schemes has to be complied by pension fund for preparation of financial statements
and calculation of Net Assets Value:
1. The Pension Fund should maintain their scheme-wise books of account on an accrual basis. Investment
should be stated as per the valuation guidelines issued by the Authority, at the Balance Sheet date or date of
computation of asset value or Net Asset Value (NAV).
2. Investments should be tallied with the custodian records and units should be tallied with Central
Recordkeeping Agency records on a daily basis.
3. All allowable expenses and incomes accrued upto the valuation date, which are considered for computation
of asset value/ NAV, major expenses like investment management fees and other allowable periodic
expenses like custodian charges, NPS Trust expenses reimbursement etc, should be accrued on a day-to-day
basis. The period to be considered for accrual will be the financial year.
4. Dividend income earned by a scheme should be recognised, not on the date the dividend is declared, but on
the date the share is quoted on an ex-dividend basis.
5. In respect of all interest-bearing investments, income must be accrued on a day to day basis. Therefore, when
such investments are purchased, interest paid for the period from the last interest due date upto the date of
purchase must not be treated as a cost of purchase but must be debited to Interest Recoverable Account.
Similarly, interest received at the time of sale for the period from the last interest due date upto the date of
sale must not be treated as an addition to sale value but must be credited to Interest Recoverable Account.
6. In determining the holding cost of investments and the gains or loss on sale of investments, the "weighted
average cost" method must be followed.
7. Transactions for purchase or sale of investments should be recognised as of the trade date and not as of the
settlement date, so that the effect of all investments traded during a financial year are recorded and reflected
in the financial statements for that year. Where investment transactions take place outside the stock market,
for example, acquisitions through private placement or purchases or sales through private treaty, the
transaction should be recorded in the event of a purchase, as of the date on which the scheme obtains an
enforceable obligation to pay the price or, in the event of a sale, when the scheme obtains an enforceable
right to collect the proceeds of sale or an enforceable obligation to deliver the instruments sold.
8. Bonus shares to which the scheme becomes entitled should be recognised only when the original shares on
which the bonus entitlement accrues are traded on the stock exchange on an ex-bonus basis. Similarly, rights
entitlements should be recognized only when the original shares on which the right entitlement accrues are
traded on the stock exchange on an ex-rights basis.
9. The cost of investment shall include only the stamp charges and permissible equity brokerage thereon. For
privately placed debt instruments, any front-end discount offered to the pension fund shall be excluded from
the cost of the investment
10. All taxes which are leviable and actually paid shall be charged to the NAV of the Fund as permitted by the
Authority and be borne by the Subscriber. Any subsequent refund on this account, if any, should be added to
the scheme/fund as income.
11. The Investment Management Fee is inclusive of all transaction related charges except brokerage on equity
transactions as permitted and custodian charges alongwith applicable taxes thereon. The Investment
Management Fee is calculated on the daily assets managed by the pension fund. Fees payable to the
Authority shall not be charged to the scheme
12. In respect of investments below investment grade and investments classified as default, recognition,
classification and provisioning should be in compliance with the guidelines issued by the Authority."
XLIV. In Schedule VIII (Banking and Central Recordkeeping Agreements) of the principal regulations, the
symbols, words and numerals, “See regulation 10(1)(c)” shall be substituted with “see regulation 10(1)(d)”.
XLV. After Part II in Schedule X (Investment and Risk Management Committee) of the principal
regulations, the following shall be inserted, namely:
"Part III
Audit Committee as per the provisions of Companies Act, 2013
Part IV
Nomination and remuneration committee as per the provisions of Companies Act, 2013"
XLVI. After Schedule XI (Investment management agreement format) of the principal regulations, a new
schedule XII (Illustration for calculation of scheme net asset value (NAV)) shall be inserted as follows:
"SCHEDULE XII
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (PENSION FUND)
REGULATIONS, 2015
[see regulation 18(2)]
ILLUSTRATION FOR CALCULATION OF SCHEME NET ASSET VALUE (NAV)
NAV Calculation formula
NAV per unit = Net Assets
                   Outstanding units
1. Net Assets: Market Value of investments held in scheme + current assets -current liability – contributions
receipts for the day
2. Current Liabilities: It includes payables towards allowable charges, redemption payable, funds to be paid
due to purchase of securities.
3. Current Assets: Funds to be received due to sale of securities, accrued interest, dividends, bank account
balance (including contribution receipts for the day) etc.
4. Market Value of Investment held by scheme: Value of the investments held in scheme derived as per the
valuation guidelines issued by the Authority.
5. Outstanding Units: Number of outstanding units at the valuation date (closing unit of previous ‘business
day').
6. Contributions Receipts for the Day: The inflows (contributions) received for the day is not used for
calculating the net assets for the day as the units corresponding to such inflows are pending creation.
Example on NAV Calculation (illustrative purpose)
+---------------------------------------+----------------------------------+-----------------------+----------------------------------+
| Particulars                           | Net assets before units'         | Movement              | Net assets post units'           |
|                                       | creation (Rs)                    | (Rs)                  | creation (Rs)                    |
+=======================================+==================================+=======================+==================================+
| Market Value of Investments*          | 1,00,00,000                      |                       | 1,00,00,000                      |
+---------------------------------------+----------------------------------+-----------------------+----------------------------------+
| Current Assets*                       | 5,00,000                         |                       | 5,00,000                         |
+---------------------------------------+----------------------------------+-----------------------+----------------------------------+
| Contributions Receipts for the Day    | (1,00,000)                       | 1,00,000              | -                                |
+---------------------------------------+----------------------------------+-----------------------+----------------------------------+
| Total Assets*                         | 1,04,00,000                      |                       | 1,05,00,000                      |
+---------------------------------------+----------------------------------+-----------------------+----------------------------------+
| Current Liability*                    | (1,000)                          |                       | (1,000)                          |
+---------------------------------------+----------------------------------+-----------------------+----------------------------------+
| Net Assets                            | 1,03,99,000                      |                       | 1,04,99,000                      |
+---------------------------------------+----------------------------------+-----------------------+----------------------------------+
| Outstanding units                     | 9,99,000                         | 9606.6930             | 10,08,607.6930                   |
+---------------------------------------+----------------------------------+-----------------------+----------------------------------+
| Net asset value per unit              | 10.4094                          |                       | 10.4094                          |
+---------------------------------------+----------------------------------+-----------------------+----------------------------------+
* value of investments remaining unchanged during the day."
Dr. DEEPAK MOHANTY, Chairperson
[ADVT.-III/4/Exty./750/2023-24]
Note: The Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2015 were
published vide Notification No. PFRDA/12/RGL/139/9, on the 19th May, 2015 in the Gazette of India, Extraordinary,
Part III, Section 4, No. 168, and were subsequently amended by the Pension Fund Regulatory and Development
Authority (Pension Fund) (First Amendment) Regulations, 2016 published vide Notification No.
PFRDA/12/RGL/139/9, on the 8th September, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No.
343, the Pension Fund Regulatory and Development Authority (Pension Fund) (Second Amendment) Regulations,
2020 published vide Notification No. PFRDA/12/RGL/139/9, on the 5th February, 2020 in the Gazette of India,
Extraordinary, Part III, Section 4, No. 48, the Pension Fund Regulatory and Development Authority (Pension Fund)
(Third Amendment) Regulations, 2020 published vide Notification No. PFRDA/12/RGL/139/9, on the 14th May,
2020 in the Gazette of India, Extraordinary, Part III, Section 4, No. 169, the Pension Fund Regulatory and
Development Authority (Pension Fund) (Fourth Amendment) Regulations, 2021 published vide Notification No.
PFRDA/12/RGL/139/9, on the 1st April, 2021 in the Gazette of India, Extraordinary, Part III, Section 4, No. 139, the
Pension Fund Regulatory and Development Authority (Pension Fund) (Fifth Amendment) Regulations, 2021
published vide Notification No. PFRDA/12/RGL/139/9, on the 25th May, 2021 in the Gazette of India, Extraordinary,
Part III, Section 4, No. 202 and the Pension Fund Regulatory and Development Authority (Pension Fund) (Sixth
Amendment) Regulations, 2021 published vide Notification No. PFRDA/12/RGL/139/9, on the 15th July, 2021 in the
Gazette of India, Extraordinary, Part III, Section 4, No. 286.

                

                
                
                
            

            
        


        
        

        
        
        

            

                

                    
                        
                    
                

                

                    
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