PFRDA Constitutes SAARG to Modernise NPS Investment Framework

The Pension Fund Regulatory and Development Authority (PFRDA) has constituted a Committee of Investment Experts on Strategic Asset Allocation and Risk Governance (SAARG) to review, refine, and modernise the investment framework of the National Pension System (NPS).

Mandate and Objectives

SAARG has been mandated to undertake a comprehensive review of the existing NPS investment guidelines, benchmark them against global best practices followed by leading pension systems and assess their alignment with the evolving Indian investment ecosystem. 

The Committee’s objective is to strengthen the NPS investment architecture to support long-term retirement wealth creation, enhance diversification, improve risk management practices, and expand investment choices for subscribers.

Scope of Work

The scope of SAARG includes the examination of strategic asset allocation frameworks; review and introduction of asset classes; performance measurement and accountability mechanisms; asset–liability management practices; valuation standards for alternative investments; portfolio stability and liquidity optimisation measures; governance and intermediary architecture; and the integration of sustainability considerations into investment decision-making. 

Composition and Chairperson

Shri Narayan Ramachandran, former Country Head and Chief Executive Officer of Morgan Stanley India will chair SAARG. The Committee comprises eminent experts from the fields of capital markets, asset management, and securities law.

Significance of the Committee

The constitution of SAARG reflects PFRDA’s continued commitment to strengthening the NPS investment framework through a forward-looking, resilient approach, ensuring it remains diversified and aligned with the evolving needs of subscribers in their long-term wealth-creation journey.

Also Read: PFRDA Announces New Regulatory Framework to Strengthen NPS Growth

The Committee shall have a period of nine months to examine the issues within its mandate and submit its report along with recommendations to PFRDA.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.