Ministry to seek Cabinet nod for interim pension regulator soon

Initially, one pension fund would be set up in the public sector and few others would be allowed in the private sector. Just in case of Sebi and Irda, initially an interim authority would be set and a permanent authority would come into being after enactment of a new PFRDA Act by Parliament in due course. Once the Cabinet nod is obtained, Sinha said an interim regulator would be in place which would lay down the criteria for allowing global pension funds to start operations in the country.

‘‘Although the oasis report had suggested allowing only six pension funds in the country, the regulator will prescribe the criteria and would be free to appoint any number of players,’’ Sinha said. The existing pension plans launched by life insurers would remain under the ambit of Irda and the pension funds allowed by PFRDA would be operate separately.