Pension funds needed to boost stock markets: govt

New Delhi, Nov 29 | Updated: Nov 30 2006, 08:02am hrs
The government has said pension funds would be required to strengthen and stabilise the stock markets. Minister of state for finance PK Bansal said efforts are on to evolve a consensus on the proposed pension reforms and pass the pension fund regulatory and development authority (PFRDA) Bill in the current Parliament session.

Addressing a seminar "Transparent stock market is key to inclusive growth," Bansal said the boom in the stock market must also touch the lives of the poorest of the poor.

He said inclusive growth is possible only through the creation of adequate jobs and at least seven crore jobs must be created. Bansal pointed out that to achieve this, participation of the private sector would be crucial.

"An 8% growth rate would be meaningless if it is not inclusive," Bansal said, adding that though bank credit is also growing at 31%, it is not sufficiently percolating down to the bottom of the society. He said the government was trying to get all parties on board to get the pension Bill passed.

Meanwhile, the Left parties have said they would oppose the passage of the Bill, envisaging defined contribution in place of defined benefit, in Parliament. The Left parties leaders also said they would not support any move facilitating investment of pension corpus in the stock market.