PFRDA (Trustee Bank) Regulations, 2015 – Proposed Amendments

Name of the person/ entity proposing comments

Contact details (Email & Mobile no.)
Category (intermediary / public)

Explanation: System auditor is an auditor empanelled with CERT-in or Ministry of Electronics and Information Technology (MeitY), Government of India.

a) verify the documents, inspect the infrastructure, and resources including

b) seek report from any agency which may have a bearing on the application.

Provided that, before rejecting any such application, the Authority shall give the applicant an opportunity to remove the objection within such time as may be specified by the Authority:

Provided further that where an application is rejected by the Authority for the reason that it contains false or misleading information, no such opportunity may be given and the applicant shall not make any application for grant of certificate under these regulations or any other regulations for a period of one year from the date of such rejection.

Provided that where the Authority is of the prima facie opinion that the registration ought not to be granted, it shall communicate the reasons for forming such an opinion and give the applicant an opportunity to explain why its application should be accepted, within fifteen days of the receipt of the communication from the Authority, to enable it to form a final opinion.

Provided further that where an application has been rejected on the grounds of being incorrect, false or misleading in nature or has omitted to disclose material facts, no fresh applications for grant of Certificate of Registration shall be considered for a period of one year from the date of rejection.

(i) amalgamation, demerger, consolidation or any other kind of corporate restructuring falling within the scope of section 232 of the Companies Act, 2013 (13 of 2013) or the corresponding provision of any other law for the time being in force or any agreement or arrangement which would have the effect of such corporate restructuring;

(ii) any change in control of the Trustee Bank;

(ii) any change in the legal status of the Trustee Bank

Provided that there shall be no requirement of any loss or inconvenience to be proved on the part of the subscriber.

(a) to ascertain the infrastructural capabilities, systems and procedures;

(b) to ensure that the books of account, records including telephone records and electronic records and documents are being maintained in the manner required under these regulations;

(c) to ascertain whether adequate internal control systems, procedures and safeguards have been established and are being followed by the Trustee Bank;

(d) to ascertain whether the provisions of the Act or rules or the regulations made there under or circulars, guidelines or notifications issued by the Authority are being complied with;

(e) to inquire into the complaints received from subscribers, nodal offices, intermediaries or any other person on any matter having a bearing on the activities assigned by the Authority to the Trustee Bank;

(f) to inquire suo motu into such matters as may be deemed fit in the interest of subscribers.

(a) ascertaining the infrastructural
capabilities, systems and procedures;

(g) ensuring that the books of account, records including call records and electronic records and documents are being maintained in the manner required under these regulations;

(b) ascertaining whether adequate internal control systems, procedures and safeguards have been established and are being followed by the Trustee Bank;

(h) ascertaining whether the provisions of the Act or rules or the regulations made there under or circulars, guidelines or notifications issued by the Authority are being complied with;

(c) inquiring into the complaints received from subscribers, nodal offices, intermediaries or any other person on any matter having a bearing on the activities of the Trustee Bank;

(i) inquiring suo motu into such matters as may be deemed fit in the interest of subscribers.

Content in bold letter – moved to Reg. 9(3)(d)-

(1) Any Trustee Bank, which has been granted a certificate of registration under the Act or the regulations made there under, desirous of giving up its activity and surrendering the certificate, may make a request for such surrender to the Authority.

(2) While disposing of a request under these regulations, the Authority may require the concerned Trustee Bank to satisfy the Authority of the factors as it deems fit, including but not limited to the following:— (a) the arrangements made by the Trustee Bank at its own costs and expenses for maintenance and preservation of records and

other documents required to be maintained under the Act, regulations and guidelines;

(b) redressal of subscriber grievances;

(c) transfer of records, funds or securities of the subscribers at its own cost and expense;

(d) the arrangements made by it for ensuring continuity of service to the subscribers;

(e) defaults or pending actions, if any.

(3) While accepting the surrender request, the Authority may impose such conditions upon the Trustee Bank as it deems fit for the protection of interest of the subscribers of the schemes regulated or administered by the Authority and the Trustee Bank concerned shall comply with such conditions.

(4) No Trustee Bank shall be permitted to surrender its certificate, in respect of which any action for default has been initiated or has been contemplated by the Authority.

–(1) Any Trustee Bank may
surrender its certificate of registration by making a request to the Authority. (2) For consideration of such request, the Authority may require the Trustee Bank to satisfy the following—

(a) arrangements made by it for maintenance and preservation of records and other documents required to be maintained under the Act, regulations and guidelines, at its own cost and expense, to ensure continuity of service to subscribers;

(j) rectifying the defaults and pending actions, if any;

(c) redressal of subscriber grievances;

(d)Any other measures to be taken in the interest of the subscribers.

(3) While considering the request for surrender, the Authority may impose such conditions upon the Trustee Bank as it deems fit for the protection of interest of the subscribers.

(4) No request for surrender shall be entertained from a Trustee Bank in respect of which any investigation, inquiry or adjudication has been initiated or is contemplated by the Authority.

(5) No surrender shall be permitted unless the Authority is satisfied that the Trustee Bank has complied with or has taken steps to comply with the
requirements under sub-regulation (2) and other conditions, if any, under sub-regulation (3).

(6) Where the Authority has accepted the request for surrender, it shall cancel the certificate of registration granted to the Trustee Bank and inform Trustee Bank within seven days and place such information on its website and also direct the entity to place the information on its website and disseminate the information, in such manner, as may be required.

(a) not undertake any additional assignment or collect any new money or information from the subscriber. During the period of such suspension, it shall cease to carry on any activity in respect of which the certificate of registration had been granted;

(b) allow its subscribers to transfer, as the case may be, their money or assignments or allow the National Pension System Trust to withdraw any assignment given to it, without any additional cost;

(c) make provisions as regards liabilities incurred or assumed by it;

(d) take such other action including the action relating to any records or documents and information or money of the subscribers that may be in the custody or control of such Trustee Bank, within the time limit and in the manner, as may be required under the relevant regulations or as may be directed by the Authority, while passing the order under these guidelines or otherwise.

(2) On and from the date of surrender or cancellation or suspension of the certificate of registration, the concerned Trustee Bank shall-

(a) return the certificate of registration so cancelled to the Authority and shall not represent itself to be a holder of the certificate of registration for carrying out the activity for which such certificate had been granted;

(b) cease to carry on any activity in respect of which the certificate had been granted;

(c) transfer funds, records and documents with complete reconciliation related to its activities to another Trustee Bank, as directed by the Authority, holding a valid certificate of registration to carry on such activities and allow its subscribers to transfer their funds to the transferee entity, without any additional cost;

(d) make provisions as regards liability incurred or assumed by it;

(e) take such other action including the action relating to any records or documents and assets of the subscribers that may be in the custody or control of such Trustee Bank, within the time limit and in the manner, as may be required under the relevant regulations or as may be directed by the Authority while passing order under these guidelines or otherwise.

(a) cease to transact fresh business under the National Pension System or other pension schemes, as the case may be;

(b) take such action in respect of the assets, records, documents or information that may be in the custody or control of the Trustee Bank, within the time limit and in the manner as may be required under the relevant regulations or as may be directed by the Authority;

(c) transfer at its own cost the assets, records, documents or information that are in its custody or control to another Trustee Bank in the form and manner as may be directed by the Authority;

(d) the Trustee Bank shall at its cost and expense provide all the necessary support in ensuring smooth transfer of all the assets under its management and where required by the National Pension System Trust or the Authority, and make such public announcement or disclosure as may be conducive to subscriber’s interest, regarding such transfer of assets. It shall also ensure that the transfer of all the relevant
documents, record or information is
made in accordance with the directions
issued by the Authority.

(e) the transfer of such assets shall be undertaken in accordance with the guidelines or instructions that may be issued by the Authority;

(f) the Trustee Bank shall be subject to the directions of the Authority until all such transfers or actions are completed or until, the certificate of registration remains suspended.

(2) On and from the date of cancellation of the certificate of registration, the concerned Trustee Bank shall-

(a) cease to carry on and wind up its affairs qua the activities in respect of which registration has been granted;

(b) return the certificate of registration so cancelled to the Authority and inform such other agencies, as may be directed by the Authority with regard to the said fact and disseminate the information on its website and in such other manner as may be directed;

(c) carry out any other directions within the time limits given by the Authority, and report compliance of the same.

(d) make provisions as regards liability incurred or assumed by it;

(e) take such other action including the action relating to any records or documents and assets of the subscribers that may be in the custody or control of such Trustee Bank, within the time limit and in the manner, as may be required.

The Trustee Bank shall ensure that good corporate policies and corporate governance is in place. It shall not engage in fraudulent and manipulative transactions.

Clause 5(a)

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