The Pension Fund Regulatory and Development Authority (PFRDA) on December 10, 2025, issued the Master Circular on Investment Guidelines under NPS in the Non-Government Sector.
The following has been stated namely: -
• The circular consolidates and updates the investment guidelines for National Pension System (NPS) Tier-I and Tier-II accounts in the Non-Government Sector (NGS), superseding earlier directives, to govern how pension funds must allocate subscriber assets.
• It specifies eligible asset classes and detailed investment norms (such as limits on government securities, corporate debt, mutual funds, equity and alternative instruments), with prudent credit quality and exposure caps to ensure diversified and secure pension investing.
• Guidelines include rating requirements, concentration limits, and restrictions on overseas investments, along with provisos for short-term instruments to manage liquidity.
• The circular also lists the previous circulars and letters consolidated into this master document for clarity and continuity.
• It aims to strengthen risk-based investment oversight and enhance subscriber interest protection by providing a clear and harmonised investment rule-book for pension asset managers.
[PFRDA/Master Circular/2025/06/PF-04]
