"FDI may be initially pegged at 26 per cent for pension sector as in the case of insurance sector. However, it is for the government to decide and notify it," interim Pension Fund Regulatory & Development Authority chairman D Swarup said on the sidelines of an Assocham seminar.
The pension bill does not provide for the FDI cap and neither does PFRDA have the right to decide on it. The government will have to notify the FDI limit as has been done for other sectors like telecom and aviation.
Though FDI cap is likely to be 26 per cent, government can increase it later as it has been proposed for insurance.
PFRDA bill was introduced in Parliament early this month but it was referred to Standing Committee on Finance. The Committee has been requested to give its recommendations at the earliest so that the bill could be passed in the monsoon session.
Once the bill is passed, PFRDA will get statutory powers to frame guidelines, offer licences to PFMs, appoint Central Record-keeping Agency and regulate the sector.
"Let me allay all apprehensions about the new pension scheme. It will be our duty to regulate the sector. We will be the referee of game, which will be a win-win situation for all," Swarup said.
The government intends to allow 6 pension fund managers with at least one PSU. However, Swarup said, "You have not heard the last word on this. I have an open mind. There could be more than 6 players and more than 1 PSU."