A proposal by the pension fund regulator to allow pension plans offering minimum assured returns to investors has triggered a turf battle with the stock market watchdog.
Some pension fund managers are sponsored/owned by asset management companies that fall under the regulatory ambit of the Securities and Exchange Board of India (Sebi), which prohibits assured returns.
Sebi has raised the issue with the Pension Fund Regulatory and Development Authority (PFRDA), the finance ministry and the Financial Stability and Development Council (FSDC), said three people familiar with the matter, including R.V. Verma, a whole-time member of PFRDA. The issue was discussed at an FSDC meeting on 29 August.