PFRDA accords approval to Tata Asset and Max Life for setting up pension funds

New Delhi: Tata Asset Management and Max Life Insurance Co have recently received a nod from the pension sector regulator for setting up pension fund managers, PFRDA Chairperson Supratim Bandyopadhyay said on Friday.

"We have received two (proposals)...Our board has approved both. They will take around six months to set up their pension funds. One is promoted by Tata AMC, so that is coming from the mutual fund sector, the other one will be promoted by Max Life Insurance, which is a strong life insurance company," he said while addressing the media on NPS Diwas.

The Pension Fund Regulatory and Development Authority (PFRDA) in July had opened 'on tap' registration of pension fund managers. (Also Read: New Wage Code: Here’s how it will impact your PF, salary, gratuity and pension)

Bandyopadhyay said next year the regulator will open 'on tap' registration in the initial months of the fiscal.

There are currently seven pension fund managers including -- LIC Pension Fund Limited, SBI Pension Funds Pvt Ltd and UTI Retirement Solutions Ltd exclusively for the government sector. (Also Read: 

The other four are HDFC Pension Management Co Ltd, ICICI Prudential Pension Funds Management Company Limited, Kotak Mahindra Pension Fund Ltd and Aditya Birla Sun Life Pension Management Ltd, other than the government sector.

In addition, Bandyopadhyay said, Axis Mutual Fund, which is backed by Axis Bank, is also in talks with respective regulators for getting necessary approvals for setting up pension fund.

"Axis Bank is quite hopeful that in the next 15-20 days, it (regulatory approval) will come," he said.

On the pending amendments to the PFRDA Act, Bandyopadhyay said he expects Parliament to take it up for discussion in the upcoming winter session.

"We still feel that it will come in the winter session because it is at the last stage and...Whatever little issues were there for different stakeholders that are sorted out to the satisfaction of everybody, so we hope it will go through," he said.

He also said that the various schemes under the National Pension System have seen robust growth in the current financial year beginning April. (Also Read: OYO IPO: SoftBank-backed hospitality giant files draft papers for $1.14 billion initial offer )

"Right now our total corpus is 6.67 lakh crore as of September 25, 2021. The corpus has grown from Rs 5.78 lakh crore as of March 31. Our internal assessment is that by the year end, we will reach Rs 7.5 lakh crore. Total number of subscribers as of September 25, 2021 was 4.6 crore," he said.

Sharing the half year non-government contribution, he said, on the corporate side growth in corpus is 52.85 per cent while on the pure retail segment it is 69 percent on a year on year basis.