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New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has released a detailed consultation paper proposing a revised valuation framework for Government Securities held under the National Pension System (NPS) and Atal Pension Yojana (APY). The objective is to align valuation practices with the long-term, “buy-and-hold” nature of pension investments and improve transparency in the calculation of Net Asset Value (NAV).
Titled “Alignment of Valuation Guidelines with the Core Objectives of Long-Only Pension Funds”, the paper suggests a dual valuation framework comprising:
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Accrual-based valuation for stable, long-term accumulation.
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Fair market valuation to reflect current market realities.
Key Objectives of the Proposed Framework
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Enhance Pension Wealth Stability: Minimise fluctuations in subscriber portfolios due to temporary interest rate movements.
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Simplify NAV Representation: Clearly communicate pension wealth growth during the accumulation phase.
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Support Long-Term Capital Formation: Encourage investments in long-gestation, productive infrastructure assets to bolster economic development.
PFRDA emphasized that pension funds are fundamentally long-term vehicles and should be insulated from short-term market volatility, ensuring greater stability for over 7 crore NPS and APY subscribers.
Stakeholder Participation Open
The consultation paper has been made available on the PFRDA website under the “Research and Publications” section. PFRDA has invited comments from:
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Individual NPS subscribers
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Pension fund managers
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Financial sector experts
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Academics and policy researchers
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Members of the public
Deadline for feedback: November 30, 2025.
PFRDA said that constructive inputs will help ensure that the final guidelines are aligned with global best practices while meeting the unique needs of Indian pension investors.
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#PFRDA #NPS #APY #PensionReforms #FinancialStability #GovernmentSecurities #NAVCalculation #PensionFunds #ConsultationPaper #LongTermInvestments #InvestorProtection #InfrastructureGrowth #StakeholderEngagement #RetirementPlanning #CapitalFormation #FinancialGovernance #IndiaEconomy #MarketTransparency #PublicFeedback #RegulatoryUpdates
