SEBI and AMCs should have
an active partnering role to play in the development and penetration of pension
industry in India, suggests International Advisory Board (IAB)
The International Advisory Board (IAB), in its second meeting held on
November 03, 2012, in Mumbai, suggested a need for uniform tax treatment of
retirement related investments and the need for a boost to the development of
annuity industry in India. IAB was set up in September 2011 to guide SEBI in
adopting some global practices and emerging developments and challenges in
India.
"Given the lower penetration of pension subscriptions in India, it was suggested that more private sector instruments with proper incentives and safeguards are essential for the growth of pension industry. Citing the role played by mutual funds in pension sector globally, it was emphasized that the question on the role of mutual funds in management of pension money in India is not "if" but "how". The deliberations identified issues like need for uniform tax treatment of retirement related investments irrespective of the investment routes and the need for a significant boost to the development of annuity industry in India. It was acknowledged that the AMC industry under SEBI regulations has evolved over time and, therefore, SEBI and AMC industry in India should have an active partnering role to play in the development and penetration of pension industry in India. The need to have an appropriate cost structure for handling retirement related investment was also pointed out," stated the SEBI press release.
The board also discussed the possibility of regulating analysts who provide their services for a fee under the proposed Investment Advisor Regulations of SEBI. For other analysts, the board suggested bringing a separate set of guidelines.
The members of IAB are U K Sinha, Prof. Viral Acharya, Ms. Jane Diplock, Prof. Mark Maletz, Prof. Maureen O’Hara, Prof. Arvind Panagariya and Dr. Andrew Sheng.Prashant Saran, Rajeev Kumar Agarwal, Whole Time Members of SEBI and all the Executive Directors of SEBI were a part of the meeting held on November 3rd.
The IAB meets twice in a year. The first meeting of the IAB was held on
January 27, 2012.
