Bowing to the pressure of Left parties, the government on Wednesday referred the Pension Fund Regulatory and Development Authority Bill to Parliamentary Standing Committee on Finance.
The PFRDA Bill, introduced in the House on Monday, seeks to replace the ordinance issued on December 29 to set up this regulatory authority.
Although the government is assured of National Democratic Alliance's support, it does not apparently want to antagonise the Left parties by passing the legislation.
The Left parties are opposing the Bill as they do not approve pension funds being invested in capital market.
The move is seen as a step towards mollifying the Left parties, which had supported the government in the passage of the Patents Bill.
As per rules any ordinance has to be replaced by a Bill within six months of its issue or within six weeks of Parliament being convened after its promulgation.
In such an event the ordinance will have to be replaced by a bill before April eight. Now, that the current session is adjourning tomorrow, the ordinance will lapse on April 8.