New Pension Scheme: Investment Guidelines for Private Sector NPS

1.1

The PF will manage the following separate schemes, each investing in a different asset class, being:

1.1.1

Asset class E (equity market instruments) - (a)The investment by an

NPS participant in this asset class would be subject to a cap of 50%. This asset class will be invested in shares of the companies which are listed in Bombay Stock Exchange or National Stock Exchange and on which derivatives are available or are part of BSE Sensex or Nifty Fifty Index. subject to restrictions outlined in Clause 2 below

(b)The permitted cap, as mentioned above, is expected to be maintained at that level at all points in time. However, the amount of funds invested in that asset class can differ from the specified cap by no more than 5% for purposes of portfolio balancing.

1.1.2

Asset class G (Government Securities) - This asset class will be invested in central government bonds and state government bonds subject to restrictions outlined in Clause 2 below.

1.1.3

Asset class C (credit risk bearing fixed income instruments) - This asset class contains bonds issued by any entity other than Central and State Government. This asset class will be invested in Fixed deposits and credit rated debt securities. This includes rated bonds/securities of Public Financial Institutions and Public sector companies, rated municipal bodies/infrastructure bonds and bonds of all firms (including PSU/PSE), subject to restrictions outlined in Clause 2 below.