'100% FDI in pension unlikely'

Virtually ruling out 100 per cent fdi in pension sector, the interim regulator pfrda today said strong actions like cancellation of licence and 10 years imprisonment can be inflicted on erring fund managers.

"A pension fund manager has to be an Indian company," Pension Fund Regulatory & Development Authority Chairman D Swarup said launching a survey on pension sector prepared by ac nielsen-org Marg and Asian Development Bank.

Asked whether foreign funds like Calpers will be allowed when pension is opened for private players, he said 'no'.

A foreign company has to form a Indian subsidiary with majority stake (at least 51 per cent) with an Indian partner to be able to apply for becoming a pfm, he indicated.

Although Swarup declined to hazard a guess on what would be the fdi cap in pension, official sources said there is a thinking that the cap may be initially pegged at 26 per cent as it is for insurance sector.

Swarup also said there will be no assured return on the new pension scheme.