PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

NOTIFICATION

New Delhi, the 31st March, 2021

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (PENSION FUND) (FOURTH AMENDMENT) REGULATIONS, 2021

No. PFRDA/12/RGL/139/9.—In exercise of the powers conferred by sub-section (1) of section 52 read with clauses (e), (m), (n), (o) and (p) of sub-section (2) thereof of the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013), the Pension Fund Regulatory and Development Authority hereby makes the following regulations to amend the Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2015 namely,-

1. These regulations may be called the Pension Fund Regulatory and Development Authority (Pension Fund) (Fourth Amendment) Regulations, 2021.

2. These shall come into force on the date of their publication in the official gazette.

3. In the Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2015:-

(I) Regulation 13 shall be substituted as below-

“Annual Fee– Every pension fund shall deposit with the Authority, by 10th day of subsequent month of each quarter or within ten days of grant of certificate of registration, the annual fee payable on quarterly basis, as specified in Schedule III or as may be determined by the Authority from time to time.”

(II) In Regulation 20, the following new sub-regulation shall be added after sub-regulation (2) –

“(3) The investment management fee is exclusive of brokerage and custodian fee alongwith applicable taxes thereon.

Provided that the brokerage shall be adjusted against scheme NAV, subject to maximum of 0.03%, inclusive of applicable taxes or as may be determined by the Authority from time to time.

(III) In table under Part A of Schedule III, the row mentioning “Annual Fee” shall be substituted as below-

Annual Fee As determined by the Authority from time to time, subject to minimum Rs.10,00,000/- per annum (Rs.2,50,000/- per quarter or part thereof). Non-Refundable/ % of AUM:

The amount of the Assets under Management shall be considered as on last day of preceding quarter.

By 10th day of subsequent month of each quarter or within ten days of grant of Certificate of Registration, payable on quarterly basis.

(IV) Sub-paragraph 9 of paragraph IX under Schedule VII, shall be substituted as below-

“9. The cost of investment shall include only the stamp charges and brokerage alongwith applicable taxes thereon. For privately placed debt instruments, any front-end discount offered to the pension fund shall be excluded from the cost of the investment.”

(V) Sub-paragraph 11 of paragraph IX under Schedule VII, shall be substituted as below-

“11. The Investment Management Fee is inclusive of all transaction-related charges except brokerage and custodian charges alongwith applicable taxes thereon. The Investment Management Fee is calculated on the daily assets managed by the pension fund. Fees payable to the Authority shall not be charged to the scheme.”

SUPRATIM BANDYOPADHYAY, Chairperson
[ADVT-III/4/Exty./03/2021-22]

Footnote:

1. The Principal Regulations, The Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2015 were published in the Gazette of India on 19th May, 2015 vide No. PFRDA/12/RGL/139/9.

2. The Pension Fund Regulatory and Development Authority (Pension Fund) (First Amendment) Regulations, 2016 were published in the Gazette of India on 8th September, 2016 vide No. PFRDA/12/RGL/139/9.

3. The Pension Fund Regulatory and Development Authority (Pension Fund) (Second Amendment) Regulations, 2020 were published in the Gazette of India on 5th February, 2020 vide No. PFRDA/12/RGL/139/9.

4. The Pension Fund Regulatory and Development Authority (Pension Fund) (Third Amendment) Regulations, 2020 were published in the Gazette of India on 14th May, 2020 vide No. PFRDA/12/RGL/139/9.

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