Motilal Oswal AMC Receives PFRDA Approval to Enter NPS Pension Fund Segment

Motilal Oswal Financial Services Ltd announced on Wednesday that its wholly-owned subsidiary, Motilal Oswal Asset Management Company Ltd, has received approval from the Pension Fund Regulatory and Development Authority (PFRDA) to act as a pension fund sponsor under the National Pension System (NPS). 

The approval was granted through a Letter of Appointment dated May 5, 2026. The company had applied under PFRDA’s selection process for pension fund sponsors as part of the regulator’s registration framework. 

Separate Pension Entity Planned 

The asset management company said it will now set up a separate pension fund entity to function as an investment manager under the NPS structure.  

The entity will manage pension contributions and retirement-related assets under the provisions of the PFRDA Act, 2013. 

Before starting operations, the company will need to complete several regulatory and operational procedures. These include obtaining a Certificate of Registration and signing an Investment Management Agreement (IMA) with the NPS Trust. 

The company also said agreements with custodians, intermediaries and other parties linked to pension fund operations will be completed in the next stage of the process. 

March Quarter Earnings 

Alongside the regulatory update, Motilal Oswal Financial Services reported a rise in quarterly earnings for the March quarter. 

Operating profit for the fourth quarter stood at ₹661 crore, compared with ₹527 crore in the corresponding quarter last year, a year-on-year increase of 25%. 

The company said growth in the asset and private wealth management business supported overall earnings during the quarter. Operating profit after tax from the segment rose 48% year-on-year to ₹338 crore. 

Growth In Asset Management Business 

Profit after tax from the asset management business, including alternate assets, increased 63% year-on-year to ₹249 crore during the quarter. 

For FY26, profit after tax from the segment rose 55% to ₹798 crore. Total assets under management increased 32% year-on-year to ₹1.76 lakh crore. 

Mutual fund assets under management rose 31%, while private alternates assets under management increased 104% from the previous year. 

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Conclusion 

The approval allows Motilal Oswal AMC to enter the NPS pension fund segment after completion of the remaining registration and operational formalities. 

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