PFRDA sets up ASCEND panel to attract long-term global pension

The Pension Fund Regulatory and Development Authority (PFRDA) has set up an expert panel called ASCEND (Accelerated Scaling of Global Capital Ecosystem and NPS Development) for laying out a strategic roadmap for attracting long-term global pension capital into India.

The panel is constituted as the country looks to finance its infra and other projects via global pension funds. “Global pension funds manage one of the world's largest pools of long-term capital and are well suited to finance Indian infrastructure and other nation-building assets,” the PFRDA said in its release.

The Committee’s panel of experts will recommend ways to Indian pension funds, managing the retirement savings of more than 100 million NPS subscribers, for collaborating with global pension funds via initiatives such as coinvestment platforms, strategic partnerships and innovative investment structures.

According to PFRDA, such collaboration is expected to channel stable, patient capital into India's infrastructure sector, deepen domestic capital markets and support sustainable economic growth. It also added that greater collaboration could support the growth of domestic capital markets and provide opportunities for portfolio diversification and long-term risk-adjusted returns for NPS subscribers.

The panel will primarily focus on establishing a policy, regulatory and governance framework that enables and promotes increased participation by global pension investors. In addition, by strengthening the functioning of Indian pension funds, the panel is looking to boost infrastructure financing, accelerate NPS asset growth and reinforce India's position as a preferred destination for long-term investment.

The six-member committee will be chaired by Dinesh Khara, Chairman, NPS Trust, and comprises other eminent experts from the financial sector.

The regulator added that the panel’s recommendations are expected to lay the foundation for a globally competitive pension ecosystem that supports India's long-term infrastructure financing needs and economic development.

Currently, pension funds under the NPS framework are administering funds worth ₹17.5 lakh crore, which is around 5% of India’s GDP, said the regulatory body.