PFRDA opens NPS to alternative investments.

PFRDA opens NPS to alternative investments. The Pension Fund Regulatory and Development Authority has approved allocations of up to one percent of the National Pension System's seventeen lakh crore rupees in assets under management toward alternative investment funds. This strategic move channels domestic institutional capital into private equity and venture capital markets, addressing a long-standing gap in India's alternatives ecosystem. The framework, currently undergoing testing, will enable alternative fund managers to submit proposals for pension asset allocations. Non-government pension contributions are surging at twenty-four to twenty-eight percent annually, significantly outpacing government pension growth. The regulator emphasizes that strong governance and transparency standards are essential to attract institutional investors and build confidence in the sector.