PFRDA Allows Pension Funds to Use Securities as Margin with CCIL

The Pension Fund Regulatory and Development Authority (PFRDA) has issued a circular to all CEOs of pension funds, allowing them to keep securities as margin with the CCIL for margin requirements for investment in Government securities and TREPS. This permission is in line with the changes introduced by CCIL regarding margin rules.

The circular states that all other terms and conditions as contained in the investment guidelines shall remain unchanged. This circular is issued under the powers of the PFRDA Act, 2013 and sub-regulation of the PFRDA (Pension Fund) Regulations, 2015. The revision shall be effective from the date of this circular.

Permission for keeping of securities as margin with the CCIL for margin requirements

पेंशन निधि विनियामक एवं विकास प्राधिकरण
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/2023/13/REG-PF/01

Date: 20th April, 2023

To,

CEOs of All Pension Funds

Dear Sir / Madam,

SUBJECT: Permission for keeping of securities as margin with the CCIL for margin requirements-reg.

Reference is invited to the investment guidelines issued by the Authority vide circulars dated 20th July, 2021 for Government Sector schemes and Private Sector schemes under NPS and the subsequent amendments made thereunder.

  1. In line with the changes introduced by CCIL regarding margin rules vide notification dated 26th August, 2021, the Pension Funds are hereby allowed by the Authority to keep securities as margin with the CCIL for margin requirements for investment in Government securities and TREPS.
  2. Subject to the aforementioned revision, all other terms and conditions as contained in the investment guidelines (along with the amendments) shall remain unchanged.
  3. This circular is issued in exercise of powers of the Authority under sub-clause (b) of sub-section (2) of Section 14 read with Section 23 of the PFRDA Act, 2013. and sub-regulation (1) of Regulation 14 of PFRDA (Pension Fund) Regulations, 2015 as amended from time to time.
  4. The revision shall be effective from the date of this circular.

Yours sincerely,

(ए.के. सोनी /A. K. Soni)
कार्यकारी निदेशक / Executive Director

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