Empanelment of Brokers by Pension Funds – PFMS Guidelines
PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016
Phone : 011-26517501, 26517503, 26133730
Fax : 011-26517507
CEOs of All Pension Funds
Subject: Broad Guidelines on Empanelment of Brokers by Pension Funds-reg.
This has reference to the Guidelines issued on 8th April, 2013 by Authority in respect of the empanelment of Brokers by Pension Funds. It has been decided to revise these guidelines and to issue the broad guidelines as under:
Empanelment of Brokers:
1. The Pension Fund shall prepare a well-defined policy on empanelment of brokers with approval of their Board of Directors and to be reviewed by them on annual basis.
2. The Pension Fund shall not purchase or sell securities through any single broker which is in excess of 5 percent of the aggregate purchases and sale of securities under all schemes made by the Pension Fund. However, if it becomes necessary to exceed the aggregate limit for any broker, the specific reasons therefor should be recorded in writing. The reports of all such investments are to be sent to the Authority and the National Pension System Trust on a quarterly basis.
These guidelines supersede the earlier guidelines issued in this regard and shall be applicable from the date of issuance of this Circular.
Ashok Kumar Soni