New players fight shy of pension sector
The delay in the passage of the pension Bill is keeping many new players, especially those planning to forge joint ventures with foreign firms, away from the sector. While the IDFC has decided to pull out, a few players, including DSP Blackrock, have shown interest in entering the pension sector, sources told FE.
The Pension Fund Regulatory and Development Authority (PFRDA) was earlier planning to allow the entry of more fund managers in November last year, but the deadline could not be met.
“Selection of PFMs are in the process. Existing players also need to renew their licenses. The names of new players may be announced next month,” an official said.
There hasn't been an overwhelming response as foreign players are awaiting the passage of PFRDA Bill, which was again deferred in the winter session. The Bill proposes the entry of foreign players with the same holding as it is for insurance sector, which is now at 26% and is proposed to be raised to 49% as per the insurance Bill.
In 2012, the PFRDA decided to grant licences on the basis of certain stringent eligibility criteria rather than auction based on the cost of managing the funds. Even existing players have to renew their certificates of registrations after complying with the new guidelines, which mandates a company to have a minimum networth of R25 crore, a three-year profit record and managing assets of at least R8,000 crore.
In 2007, the PFRDA allowed
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