PFRDA's ASCEND panel to help 10 crore NPS subscribers diversify, access long‑term risk‑adjusted returns

Retirement fund regulator PFRDA has established a committee to develop a strategic roadmap for attracting long-term global pension capital into the country. This panel -- formally known as Accelerated Scaling of Global Capital Ecosystem and NPS Development (ASCEND) -- will achieve this through collaboration between domestic pension funds with their major global counterparts under the same architecture used for the National Pension System (NPS), the government-backed, market-linked defined contribution scheme.

The country’s journey towards becoming a global economic powerhouse requires sustained access to stable, long-term capital to finance its ambitious infrastructure development agenda and support inclusive economic growth, the pension regulator said in a statement.

The ASCEND panel will be chaired by Dinesh Khara, Chairman, NPS Trust. It will comprise the following members:

What will PFRDA's ASCEND panel do?

Its main tasks will involve the establishment of a policy, regulatory and governance framework to facilitate greater participation of global pension investors while safeguarding subscriber interests and maintaining financial stability.

It will cement the crucial role of the country's domestic pension funds as trusted domestic partners for global institutional capital.

The panel will seek to perform the following tasks:

• To enhance infrastructure financing
• To accelerate NPS asset growth
• To reinforce the nation's position as a preferred destination for long-term investment

10 crore NPS subscribers to be impacted

The expert panel will make recommendations that are set to lay the foundation for a globally competitive pension ecosystem. This environment will fulfil the nation's long-term infrastructure financing needs and economic development.

Its recommendations will enable Indian pension funds, which are managing the assets of 10 crore NPS subscribers, to partner with global pension funds through coinvestment platforms, strategic partnerships and innovative investment structures.

This partnership between domestic and global pension funds is seen channeling stable, patient capital into the country's infrastructure space while deepening domestic capital markets and supporting sustainable economic growth.

This collaboration will provide opportunities for diversification and deliver long-term risk adjusted returns to the underlying NPS subscribers, the statement noted.

Pension funds -- professionally managed pools of money that direct retirement savings to pay future pensions -- play a vital role in supporting economic growth and market depth. They fund fund one of the world's largest pools of long-term capital and are well suited to fund the country's nation-building assets such as infrastructure.

These funds mobilise large, long‑term pools of money that finance infrastructure, corporate investment and government bonds.

They play a crucial role in ensuring capital market stability, by matching long-duration liabilities with patient assets and also reduce reliance on short-term financing while lowering public pension burdens through funded provision.

Under NPS, pension funds currently have assets under management (AUMs) to the tune of $185 billion (Rs 17.5 lakh crore). This is equivalent to about 5 per cent of the country's GDP.