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Journalism of Courage
THe government listed the Pension Fund Regulatory and Development Authority Bill,2011 in the days list of business in the Lok Sabha on Friday.
The bill,however,could not be taken up due to adjournment of the house. The bill is one of the two critical financial bills the UPA-II is keen to see through before the elections next year.
The PFRDA bill is a money bill,which means the government cannot take any chances about it getting stalled in the house.
The listing of the bill implies the governments floor managers are now sure of getting the requisite numbers to see the bill through. The passage of the pension bill is expected to provide a major boost to market sentiments.
According to Gautam Bhardwaj,chief of Invest India Economic Foundation,the pension sector could see assets under management of over 300 billion in the next decade. In comparison,the mutual fund sector has an AUM of 80 billion,at present.
The bill allows for foreign direct investment of up to up to 49 per cent as is the case with the insurance sector. The passage of the bill will also give PFRDA a statutory status.
