PFRDA issues Guidelines for Risk Profiling of Schemes under NPS

May 13, 2022 | by TeamLease RegTech Legal Research Team

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Labour ComplianceThe Pension Fund Regulatory and Development Authority (PFRDA) on May 12, 2022 has issued Guidelines for Risk Profiling of Schemes under NPS. This shall come into force on July 15, 2022.

The following has been stated namely: -

• The Pension Funds that manages the Tier I and Tier II Schemes of Assets Classes Equity (E), Corporate Debt (C), Government Securities (G) and Scheme A, shall maintain and disclose risk profiling of the Schemes in accordance with prescribed guidelines.

• The Risk profiling shall have six levels of risk for the schemes namely: -

“Low Risk, Low to Moderate Risk, Moderate Risk, Moderately High Risk, High Risk and Very High risk”

• Following parameters shall be used in Risk Profiling of Schemes namely: -

1. Debt (Includes Government Securities):

a. Credit Risk

b. Interest Rate Risk

c. Liquidity Risk

2. Equity:

a. Market capitilization

b. Volatility

c. Impact Cost

• The Risk Profiling has to be disclosed on the website of respective Pension Funds under ‘Portfolio Disclosure’ section within 15 days from the close of each quarter ending month.


[Notification No. PFRDA/2022/11/REG-PF/03]



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