New Delhi: Pension Fund Regulatory and Development Authority (PFRDA) is understood to have shortlisted six fund managers, including UTI Mutual Fund and Reliance Mutual Fund, for managing pension funds for the unorganised sector.
The regulator is planning to launch pension scheme for the unorganised sector from 1 April 2009. The pension scheme is expected to operate under the defined contribution scheme as against the earlier defined benefit scheme.
UTI Mutual Fund chief marketing officer Jaideep Bhattacharya claimed, “We are the best bidders...from our perspective, it’s a great opportunity as it will contribute to our business because this pool will grow substantially over years.”
In addition to UTI MF, other public and private sector entities including banks, insurance companies and financial institutions like Reliance MF, ICICI Prudential Life Insurance, IDFC MF, SBI and Kotak MF, are also believed to be among the qualifiers.
The fund manager will be appointed for a period of three years on the basis of a technical and financial bid.
The pension fund regulator last month invited bids for managing pension funds for the unorganised sector. As many as 21 companies submitted their Expression of Interest for the same.
The government has already introduced the new pension system for the central government (excluding armed forces) with effect from 1 January 2004.
As per the eligibility criteria, the central and state government companies can also take part in bidding, provided they have been managing assets worth at least Rs8,000 crore for the last one year.
According to the advertisement of PFRDA in January, the firms would be incorporated as separate companies in which foreign investment, direct or indirect, should not exceed 26% of the paid-up share capital.
Each pension fund will offer standard payment options including a default option with asset allocation prescribed by PFRDA, it had said.