In what could set off a turf war between regulators, the Pension Fund Regulatory Development Authority (PFRDA) is compiling details of superannuation funds run by private firms, as it tries to sift through gray areas of regulation and bring those not governed by any statute under its ambit.
“There are a huge number of superannuation schemes run by private companies for their employees that are managed by insurance companies including the Life Insurance Corporation. However, there seems to be some kind of blackout in their supervision. So we are seeking information and clarity on their regulations,” said RV Verma, full-time member (finance), PFRDA.
The pension regulator, which currently only regulates the National Pension System, is also collecting data on exempt provident fund trusts that are set up under the EPF Act, 1952. “The idea is to close down the gray areas and the regulatory gaps,” said Hemant Contractor, newly appointed chairman of PFRDA. The plan comes up after the enactment of the PFRDA Act. Once the compilation of data is done, the PFRDA may also take it up at an inter-regulatory forum of the Financial Stability and Development Council as many of the superannuation schemes are currently under the ambit of the insurance regulator IRDA or the Sebi.