NOTIFICATION
New Delhi, the 22nd September, 2021
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (CUSTODIAN OF SECURITIES) (AMENDMENT) REGULATIONS, 2021
F. No. PFRDA/12/RGL/139/10.—In exercise of the powers conferred by sub-section (1) of section 52 read with clauses (e), (n), (o), (p) and (w) of sub-section (2) thereof of the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013), the Pension Fund Regulatory and Development Authority hereby makes the following regulations to amend the Pension Fund Regulatory and Development Authority (Custodian of Securities) Regulations, 2015 namely, –
1. These regulations may be called the Pension Fund Regulatory and Development Authority (Custodian of Securities) (Amendment) Regulations, 2021.
2. These shall come into force on the date of their publication in the official gazette.
3. In the Pension Fund Regulatory and Development Authority (Custodian of Securities) Regulations, 2015: –
(I). After clause (b) of sub-regulation (1) of regulation 8, the following proviso shall be inserted-
“Provided that in the same group where the sponsor of a Pension Fund, Trustee Bank or central record keeping agency or their associates, are holding 50 percent or more of the voting rights of the share capital of a custodian, it can apply to become Custodian with the Authority under following conditions:
(i) the sponsor, associates or the holding company, as the case may be, should have net worth of at least Rs.50,000 crore at all points of time;
(ii) 50 per cent or more of the directors of the custodian shall be those who do not represent the interests of the sponsor or its associates;
(iii) neither the custodian nor the pension fund company shall be a subsidiary of each other;
(iv) no person shall be a director of both the custodian and the pension fund company; and
(v) the custodian and the pension fund company shall sign an undertaking that they will act independently of each other in their dealings with the schemes.
Explanation – For the purpose of this proviso the expression “holding company” shall have the meaning as provided in Section 2(46) of the Companies Act, 2013[Act No.18 of 2013]”
(II). Clause (c) of sub-regulation (1) of regulation 8 shall be substituted as below-
“The applicant’s minimum holding of assets under custody on the date of application shall be as defined under the selection process.”
Footnote:
1. The Principal Regulations, the Pension Fund Regulatory and Development Authority (Custodian of Securities) Regulations, 2015 were published in the Gazette of India on 14th May, 2015 vide notification No. PFRDA/12/RGL/10.