The Department of Industrial Policy and Promotion, Ministry of Commerce & Industry, Government of India has issued Press Note 4 of 2015 on 24 March 2015 amending the Consolidated Foreign Direct Investment (FDI) Policy Circular of 2014 with immediate effect to permit 49% FDI in the pension sector. Within this limit FDI up to 26% is under the automatic route and above that up to 49% is under the Government route.
FDI in pension funds is allowed as per the Pension Fund Regulatory and Development Authority Act, 2013 (PFRDA Act) and will be subject to certain conditions, such as, entities bringing in foreign equity investment should obtain necessary registration under the Pension Fund Regulatory and Development Authority and comply with other requirements of the PFRDA Act.