PFRDA Seeks Feedback on New Valuation Framework for Pension Funds

The Pension Fund Regulatory and Development Authority (PFRDA) has launched a Consultation Paper focused on revamping valuation guidelines for government securities within pension funds. Titled 'Alignment of Valuation Guidelines with the core objectives of Long-only Funds,' the paper is a strategic move to bolster governance and safeguard subscriber interests.

According to the Ministry of Finance, the proposal, dated October 17, 2025, introduces a dual valuation approach—comprising both 'accrual' and 'fair market' valuations. This approach is designed to ensure stable, transparent pension wealth accumulation, mitigate short-term interest rate effects on net asset values, and support long-term capital formation. The reforms aim to enhance infrastructure investments and bolster stakeholder confidence.

The PFRDA is soliciting comprehensive feedback from various stakeholders, including NPS participants, industry experts, and the public. Interested parties are encouraged to review and provide insights by the deadline of November 30, 2025, to foster effective scheme development and regulation.