Summary of this article
PFRDA has set up the ASCEND committee to attract long-term global pension capital into India.
The panel will recommend ways for Indian and global pension funds to collaborate through co-investment and new investment structures.
The move aims to support infrastructure financing, deepen capital markets, and strengthen NPS growth.
The Pension Fund Regulatory and Development Authority (PFRDA) has formed a six-member ASCEND committee and tasked it with suggesting measures to tap into the long-term capital of global pension funds. The strategic panel, whose name stands for Accelerated Scaling of Global Capital Ecosystem and NPS Development, is designed to develop a roadmap for attracting global pension capital into the Indian economy.
This initiative comes at a point when India is seeking sustained access to stable capital to fund its ambitious infrastructure development and inclusive economic growth.
What The ASCEND Committee Is Tasked With
The committee is tasked with recommending measures to enable Indian pension funds to partner with global institutional investors and develop innovative investment plans. The collaboration is expected to culminate in a strategic partnership, co-investment platform, and innovative investment structures.
The goal of these partnerships is to channel stable long-term capital into nation-building assets and the infrastructure sector. Besides, this is also expected to deepen the domestic capital market and support economic sustainable growth in the country.
According to PFRDA, the collaboration with global pension funds will provide opportunities for diversification and long-term risk-adjusted returns to the subscribers. The ASCEND Committee will also create a policy and a regulatory and governance framework for the same.
The idea is to use this framework to facilitate increased participation from global investors and, at the same time, maintain overall financial stability and safeguard subscribers’ interests. In short, the purpose of forming this committee is to position India as a preferred destination for long-term investment by global players, enhance infrastructure financing, and boost the asset growth of the National Pension System (NPS).
Who Are The Members Of ASCEND Committee
The committee has a lineup of financial sector experts. It is chaired by Dinesh Khara, chairman of the NPS Trust. The other five members of the panel include Narayan Ramachandran, chairman of TeamLease Services; Ananth Narayan, former whole-time member of the Securities and Exchange Board of India (Sebi); Ashvin Parekh, managing partner of Ashvin Parekh Advisory Services; Arvind Gupta, trustee of the NPS Trust; and Suparna Tandon, CEO of the NPS Trust, who serves as the member secretary.
A Multi-Billion Dollar Pension Sector Ecosystem
The size of the Indian pension sector is substantial. At present, pension funds manage approximately $185 billion (around Rs 17.50 lakh crore) under NPS, which is nearly 5 per cent of India’s gross domestic product (GDP). The partnership between Indian pension funds under NPS infrastructure and global pension funds is expected to provide several direct advantages to the 100 million NPS subscribers, according to PFRDA.
Subscribers will benefit through diversified pension assets and financial stability as the ASCEND Committee is mandated to develop a framework that prioritises subscribers’ interests and financial stability while facilitating global participation. By strengthening the position of Indian pension funds as trusted partners for global institutional capital, PFRDA aims to accelerate the growth in NPS assets as well as build a pension ecosystem that could provide NPS subscribers a secure financial future.
