Overview
- In a consultation paper, the regulator proposes valuing part of long-dated government securities on an accrual basis and the remainder at fair market prices.
- PFRDA says the approach would depict pension wealth more clearly during long accumulation phases by dampening short-term interest rate swings in reported NAVs.
- The framework is intended to align pension savings with long-term capital formation, including financing of long-gestation infrastructure assets.
- At present, NPS and APY portfolios are fully marked to market with scheme NAVs published at the close of each working day.
- The paper, dated October 17, invites comments from subscribers, fund managers, experts and the public, and notes NPS–APY assets of about ₹16 lakh crore across roughly 90 million accounts.