PFRDA Forms ASCEND Committee to Attract Global Pension Capital to India
Quick Look
- PFRDA has established the ASCEND committee to create a roadmap for attracting global pension capital into India.
- This initiative aims to foster collaborations between Indian and global pension funds, promoting co-investment platforms to finance infrastructure and boost economic development, ultimately benefiting NPS subscribers with diversified, risk-adjusted returns.
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Why It Matters
The Pension Fund Regulatory and Development Authority (PFRDA) has formed a high-level committee, ASCEND, to attract global pension capital into India through collaborations between Indian and global pension funds.
The Pension Fund Regulatory and Development Authority (PFRDA) has formed a high-level committee to create a roadmap for attracting long-term global pension capital into India.
PFRDA said that such global pension capital will be attracted through collaborations between Indian pension funds under the National Pension System (NPS) framework and leading global pension funds.
What is the name of the PFRDA committee to attract global pension funds?
The committee called, ASCEND (Accelerated Scaling of Global Capital Ecosystem and NPS Development), has a panel of experts who will recommend measures to enable Indian pension funds to partner with global pension funds through co-investment platforms, strategic partnerships and innovative investment structures.
“Its 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,” said PFRDA in its statement.
How will the ASCEND committee work?
The committee will create a policy, regulatory and governance framework that will facilitate greater participation of global pension investors while safeguarding subscriber interests and financial stability.
How can NPS subscribers benefit from collaborations between global pension funds and Indian NPS funds?
PFRDA said that such a collaboration is expected to channel stable and patient capital into India's infrastructure sector, deepen domestic capital markets and support sustainable economic growth.
The partnership provides opportunities for diversification and delivers long-term risk adjusted returns to the underlying NPS subscribers, said PFRDA in its statement.
"By strengthening the role of Indian pension funds as trusted domestic partners for global institutional capital, the ASCEND panel aims to enhance infrastructure financing, accelerate NPS asset growth and reinforce India's position as a preferred destination for long-term investment,” said PFRDA.
Who will head PFRDA’s ASCEND committee and who are its members?
The committee will be chaired by Dinesh Khara, chairman, NPS Trust, and comprises eminent experts from the financial sector as follows.
List of ASCEND committee members
1 Shri Dinesh Khara, Chairman, NPS Trust
2 Shri Narayan Ramachandran, Chairman, TeamLease
Services Limited
3 Shri Ananth Narayan, Former Whole Time Member, SEBI
4 Shri Ashvin Parekh, Managing Partner, Ashvin Parekh
Advisory Services
5 Dr. Arvind Gupta, Trustee, NPS Trust
6 Ms. Suparna Tandon, CEO, NPS Trust
What are 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.
Through this initiative, PFRDA aims to channel more patient capital into India's economy while strengthening the domestic pension ecosystem.
What is NPS?
NPS is a market-linked voluntary contribution scheme that helps you save for your retirement. The scheme is simple, systematic, portable and flexible.
Pension funds currently manage 185 billion USD (17.50 lakh crore) which is 5% of India’s GDP under NPS, says PFRDA.
Open Questions
- What specific policy and regulatory frameworks will be recommended?
- What are the initial target sectors for co-investment?
- What are the expected timelines for implementing ASCEND's recommendations?
