PFRDA to allow new fund managers next month

Existing players also have to renew their certificates of registrations after complying with the new guidelines, which mandate a company to have a minimum net worth of R25 crore, a three-year profit record and managing assets of at least Rs 8,000 crore, a PFRDA official told FE.

‘‘The PFRDA will announce the names of the new fund managers on Nov 1,’’ the official said.

‘‘There is good response from new players eager to enter the pension sector,’’ the official said but declined to name the companies who have applied.

In 2007, PFRDA allowed state-owned LIC, SBI and UTI AMC to set up pension fund companies and manage the long-term savings of government staff. After two years, PFRDA allowed four private players - IDFC Pension Fund Management Co Ltd, ICICI Prudential Pension Funds Management Co Ltd, Kotak Mahindra Pension Fund Ltd and Reliance Capital Pension Fund Ltd.

These seven PFMs now manage assets worth over R20,000 crore of 3.75 million subscribers in government, private and unorganised sectors.

Many more banks, mutual funds and insurance companies were eager to enter the fast growing pension sector but were unable to do so because of restrictions on the number of players and a selection criteria based on lowest bid for fund management charges.

In July 2012, the PFRDA abolished the bidding

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