India. Want to give more options to pension funds, so opening up IPO investments: PFRDA chairman
Pension Fund Regulatory and Development Authority (PFRDA) will soon allow pension fund managers (PFMs) to invest in initial public offerings (IPOs), follow on public offers (FPOs) and offer for sale (OFS).
This would mean that PFMs could use their investment corpus to invest into upcoming IPOs including the Rs 16,000 crore initial public offering of Paytm.
Speaking to Moneycontrol, Supratim Bandyopadhyay, Chairman, PFRDA said these will allow PFMs to have a wider range of investment options.
“This will broaden the PFMs investment universe and help customers in a big way in form of returns,” he added. As of July 10, equity returns under NPS stood at 11.31 percent which is the highest compared to all other instruments like corporate bonds and government securities.
Elaborating further, Bandyopadhyay said that their guidelines will borrow from fellow regulators like IRDAI (Insurance Regulatory and Development Authority of India) to stipulate the minimum IPO size threshold above which a PFM can invest.
Read more @Money Control
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