The National Pension System (NPS) is set for another round of reforms, this time for private sector subscribers, likely to be cleared in a week.
The Pension Fund Regulatory and Development Authority (PFRDA) will notify a new set of guidelines and now the pensions of private sector subscribers would also be allowed to be invested in companies’ Initial Public Offer (IPO, of equity).
This would give a big investment boost to the IPO market but this would be subject to a composite cap of 50 per cent.
Another set of investors in addition to government and private sector employees is also likely to be added, with non-resident Indians (NRIs) allowed to be a part of NPS.
Hence, the above measures would increase the ease of the companies in raising the money from the investors across all the categories and many others like these.
