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| Govt to allow investment of pension funds in stocks | | | New Delhi, Jan 22
Bolstered by the support of 19 states and despite opposition from Left parties, the Centre today said it will notify an interim investment pattern for funds collected under the New Pension Scheme that will allow putting in a part of such amount in stock markets.
The new pattern would give an option for investing five per cent of the amount in stock markets. It would also have the option of putting all the money in government bonds, Finance Minister P Chidambaram told reporters after a meeting with all state representatives.
However, differences between the Left parties and the Centre became quite evident with Left-ruled states of West Bengal, Kerala and Tripura voicing vehement opposition to the proposed investment pattern for NPS.
Left parties are also opposed to Pension Fund Regulatory and Development Authority (PFRDA) Bill, pending in Parliament. But NDA-ruled states demanded expeditious passage of the Bill.
The investment pattern would be interim in nature till the passage of PFRDA Bill. The first fund manager would be from public sector, Chidambaram said after the meeting chaired by Prime Minister Manmohan Singh.
The Left parties, whose support is crucial for passing the Bill would, however, continue to be engaged.
"We will continue to consult the political parties..." Chidambaram said, adding it was ultimately political parties which would give their views on the Bill in Parliament.
He said there was an emerging consensus that the Bill should be passed as early as possible, but "of course with some amendments".
Without naming West Bengal, Kerala and Tripura, he admitted three state governments have expressed reservations about the Bill. |
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