(a)
The legal form of the entities to be registered as 'central
record keeping agency' (CRA), pension funds (PFs) and
points of presence (POPs) will be firmed up only after
suggestions are received on this issue.
(b)
The Pension Fund Regulatory and Development Authority
( PFRDA) will consider registering an entity as a Fund
Manager on the basis of the following parameters: satisfying
minimum capital requirement criteria; past track record
including ability to provide guaranteed returns; costs'
and fees' structure; customer base; information technology
capabilities; human resources, and other related matters.
Suggestions from public and stakeholders are invited
on the quantification of these parameters.
(c)
For an entity to be licensed as a POP, it should be
a registered entity under the Reserve Bank of India
(RBI), Insurance Regulatory and Development Authority
(IRDA), Securities and Exchange Board of India (SEBI)
for regulatory jurisdiction. For pension business, it
will be regulated by PFRDA.
(d)
A minimum capital requirement will be an essential criterion
for registration as an intermediary. The quantum to
be decided after the receipt of suggestions.
(e)
The draft regulations has proposed restricting the cross
holding of ownership among intermediaries in order to
address the issue of conflict of interest.
(f)
The drafts Regulations also indicate standard service
agreement between CRA and (i) the subscriber (ii) PFs
and (iii) POPs
(g)
The charges and fees to be levied by the intermediaries
are provided for in the draft regulations. However,
the exact quantification of such fees and charges have
not been indicated. Suggestions are, therefore, invited
on quantification of these charges and fees.
(h)
The draft regulation has not indicated the period of
license / registration. However, the PFRDA has been
given right of rejecting any application which do not
conform to stipulated conditions. Further, power of
suspension and cancellation of the license has also
been provided for in the draft regulations.
(i)
Initially, it is proposed to offer four schemes to the
subscribers. The investment pattern of these schemes
will vary from a 100 per cent government debt to a growth
plan in which up to 50 per cent will be invested in
equity-based index. Suggestions are also invited on
this issue.
(j)
The draft regulations provide that the net asset value
(NAV) of schemes shall be provided on a daily basis
by the PFs .
(k)
The draft regulations provide for rejection of the application
for
registration of intermediaries. Further, provision
has also been made
for suspension and cancellation of the certificate of
registration for not conforming to provisions of the
regulations.
