PFRDA Panel for Asset Allocation & Risk Governance

New Delhi, Jan 25 (PTI) Pension fund regulator PFRDA has constituted a 9-member committee of investment experts for Strategic Asset Allocation and Risk Governance (SAARG) to review, recommend and modernise the investment framework under the NPS.

The panel, headed by Narayan Ramachandran, former country head and CEO of Morgan Stanley India, has been tasked with undertaking a comprehensive review of the existing NPS investment guidelines benchmarking them with leading global pension systems and the evolving Indian investment ecosystem.

The objective is to strengthen the investment architecture of NPS to support long-term retirement wealth creation, enhance diversification, improve risk management practices and expand subscriber choice, the Pension Fund Regulatory and Development Authority (PFRDA) said in a statement on Sunday.


The scope of the SAARG includes examination of strategic asset allocation frameworks, introduction and review of asset classes, performance measurement and accountability mechanisms, ALM practices, valuation standards for alternative investments, portfolio stability and liquidity optimisation measures, governance and intermediary architecture, and integration of sustainability considerations in investment decision-making, it said.

The other members of the panel include former whole-time member Ananth Narayan, Motilal Oswal Co-founder Raamdeo Agrawal, DSP Mutual Fund MD & CEO Kalpen Parekh and First Global Founder & CMD Devina Mehra.

The constitution of SAARG reflects PFRDA's continued commitment to strengthening the NPS investment framework in a forward-looking manner and ensuring that it remains resilient, diversified and aligned with the evolving needs of subscribers in their long-term wealth creation journey, it said.

The committee shall have a time of 9 months to examine and submit its report to PFRDA with its recommendations, it added.