| A notification is expected to be issued by the finance ministry soon, appointing Rai as the interim regulator. |
| The move had become necessary as the new pension structure for new government employees will become operational from January 1 next year. |
| The ministry has already started the process of getting Parliamentary approval for the initial working expenses of PFRDA through the second supplementary demand for grants, tabled in Lok Sabha last week. |
| The ministry will also press for the passage of an ordinance to give a statutory backing to PFRDA. |
| While the regulator will now be set up through an executive order, the ministry feels that it is necessary to give a legislative sanction to the new set-up. |
| The ministry feels that a statutory backing is necessary to give confidence to the potential investors. |
| Government sources said while a bill for the purpose will be introduced in the Budget session of Parliament, there is always a possibility that the same may be referred to a standing committee. |
| In that case, the bill is almost certain to lapse as the term of the current Lok Sabha will expire in October 2004. |
| All bills pending in Lok Sabha lapse when the House is dissolved for a general election.In such a scenario an ordinance can be used to keep the statute alive. |
| The sources said it was only fair that the officials of the PFRDA were involved in the drafting of the legislation for the new sector, which is why it was so necessary to appoint a regulator at the earliest. |
| The finance ministry has also appointed some of the staff for the PFRDA. |
| Before moving to its permanent office in South Delhi, the regulator may work from the offices of the Insurance Regulatory and Development Authority, which has moved to Hyderabad. |
| As per the scheme approved by the Cabinet earlier, the PFRDA will have a chairman, who will be a secretary level officer at the Centre, and will be assisted by two full-time and two part-time members. |
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