PFRDA lays down investment guidelines for NPS

Pension regulator PFRDA has announced investment guidelines for the National Pension Scheme (NPS) under which it has set limits for investments in corporate bonds and restricted exposure in equity of companies with not less than Rs 5,000 crore of market capitalisation.
Under the guidelines, investment in securities other than g-secs have been capped at 10 per cent of the total portfolio in the NPS scheme of the pension fund.
As for equities, it said the investment can be made in companies listed on BSE or NSE that have "market capitalisation of not less than Rs 5,000 crore as on the sate of investment".

According to guidelines, if the securities or entities have been rated by more than two rating agencies, the two lowest of all the ratings should be considered.
Elaborating, it said NPS investments have been restricted to 5 per cent of the net worth of all sponsor group companies or 5 per cent of the total asset under management (AUM) in debt securities, whichever is lower.
It further said that in the general interest of subscribers, the Central Record-keeping Agency (CRA) will ensure the ceiling of exposure in asset class E (equity), C (corporate debt) and G (government securities) by private securities at 50 per cent, 100 per cent and 100 per cent, respectively, is adhered to.