Following the approval, the firm plans to set up a separate pension fund entity that will manage retirement savings of NPS subscribers.
The company said it will complete regulatory and operational formalities, including registration and infrastructure setup, before commencing operations.
In a statement, Neil Parag Parikh, Chairman and Chief Executive Officer of the company, said the firm would approach pension fund management with a long-term focus and an emphasis on investor interest.
The development marks the company’s entry into India’s pension fund management segment, where fund managers invest contributions from NPS subscribers across asset classes such as equities, corporate bonds and government securities.
PPFAS Asset Management, based in Mumbai, is part of the PPFAS group and was established in 2011. It is promoted by Parag Parikh Financial Advisory Services Ltd., an investment advisory firm founded in 1992.
The NPS framework, regulated by PFRDA, allows multiple pension fund managers to operate, with subscribers given the option to choose and switch between them.
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