| A draft proposal, mooted by the consultants to the finance ministry for the emerging sector, says an international company planning to bid as a fund manager must have assets worth at least Rs 100,000 crore under its management and possess 20 years of experience in the business. |
| The paper, prepared by the Invest India Economic Foundation, also says pension funds may be allowed to invest up to 10 per cent of their total funds in international equity. |
| It adds that the Pension Fund Regulatory and Development Authority (PFRDA) may later permit active fund management in equities. |
| Apart from this, the Central Record-keeping Agency (CRA), to facilitate pension fund managers market their products, will provide each fund manager with a list of new customers on a daily basis. The Centre had earlier planned the setting up of a fire-wall between the contributors to the system and the fund managers to ensure that gullible investors were not misled. |
| The draft says the PFRDA will decide when this process of sharing customer data with fund managers will begin. |
| According to the proposal, the PFRDA will issue six fund manager licences, including one for a public sector company, at the initial stage. Life insurance firms, domestic and foreign banks and mutual funds can apply for the same. |
| However, there will be a cut-off limit of Rs 4,500 crore assets under management for domestic mutual funds and Rs 100,000 crore for international funds. The minimum investment limit for any bank will be Rs 4,500 crore. |
| An international firm will be allowed to participate in the bidding process without having to set up any office here. But once selected, it must incorporate a company in the country either as a 100 per cent subsidiary of the international sponsor or collaborate with a domestic entity. |
| Fund norms |
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