Prajna Capital - An Investment Guide

PFRDA WISHES TO PROTECT INTEREST OF MEMBERS FROM MARKET VOLATILITY FUND managers overseeing the government’s new pension scheme ( NPS ) may be allowed to invest only in stocks that comprise benchmark indices — the 30-share Sensex of the Bombay Stock Exchange and the National Stock Exchange’s 50-stock Nifty — as the pension regulator looks to protect the interests of members from market volatility. The Pension Fund Regulatory Development Authority ( PFRDA ), which will regulate NPS, may issue a direction in this regard, its head. Keeping in mind the recent global financial crisis and the stock market turbulence. It is not prudent to allow fund managers to put people’s money in just any stock without looking at their fundamentals. The NPS will be available to all individuals from April 1, 2009, and is mandatory for all government employees who have joined service after January 1, 2004. While savings under NPS from central and state government employees are expected to rise to Rs 6,000 cr...