Pension regulator PFRDA is working on a plan to hire a Custodian of Securities, which will provide electronic inter-connectivity to PFRDA, the NPS Trust, CRA and other intermediaries.
At present there is one Custodian of Securities appointed by the interim PFRDA.
However, under the PFRDA (Custodian of Securities) Regulations 2015, the Authority can appoint one or more Custodian of Securities, the regulator said while inviting proposals for selection of the same.
"A Custodian shall take all reasonable steps and exercise due diligence to ensure the Custody of Securities pertaining to any scheme is not contrary to the provisions of PFRDA regulations, guidelines/directions or any law in force" said the Request for Proposal (RFP).
Securities would be held on behalf of, and in the name of the NPS Trust. The term of the selected Custodian will be five years.
The Trust, PFRDA said, will be the registered owner of these securities and funds.
"However, individual NPS members shall remain beneficial owners of these assets and funds," the RFP document said.
Currently, the National Pension System (NPS) has more than 1.14 crore subscribers with total asset under management (AUM) of more than Rs 1.09 lakh crore.
NPS is a voluntary, defined contribution retirement savings scheme designed to enable subscribers to make informed decisions regarding their future through systematic savings during their working life.
