PFRDA Registration of Pension Funds Guidelines 2025 PDF Download

The Pension Fund Regulatory and Development Authority (PFRDA) has released the Registration of Pension Funds Guidelines 2025, establishing a comprehensive framework for selecting and registering Pension Funds under the National Pension System (NPS). Issued in December 2025, these guidelines aim to ensure transparency, accountability, and strong governance in India’s pension sector. The document outlines eligibility norms, evaluation criteria, documentation requirements, and fee structures for institutions aspiring to become Pension Fund sponsors.

PFRDA Pension Fund Registration Guidelines 2025 Summary

The guidelines begin by reaffirming PFRDA’s mission to regulate and develop the pension industry while safeguarding long-term financial security for citizens. The Registration of Pension Funds Guidelines 2025 formalize the process through which eligible financial institutions can become Pension Fund Sponsors and subsequently register Pension Funds to manage NPS assets. This structured approach enhances compliance, operational efficiency, and transparency in pension fund management.

PFRDA Registration Guidelines 2025 Key Features

Two-Stage Registration Process

1. Selection / Appointment of Sponsor
2. Registration of the Pension Fund established by the appointed Sponsor

This process ensures that only financially strong, compliant, and experienced entities are allowed to manage pension assets.

Eligibility Criteria

Institutions applying for Pension Fund sponsorship must meet several stringent requirements:

Financial & Operational Requirements

• Minimum five years of experience in managing equity and debt assets.
• Must be regulated by one of the following authorities:
  RBI / SEBI / IRDAI.
• Must have a positive net worth of ₹50 crore or more, consistently for the past five years.
• Paid-up capital must be at least ₹25 crore.
• Must have earned profit (post-tax) in three out of the last five financial years.
• Should possess an average AUM of ₹50,000 crore (excluding own investments).

Fit & Proper Criteria

• The applicant, its directors, and key personnel must have sound credentials, financial integrity, and a clean track record.

• Must not have violated regulatory, financial, or governance standards previously.

Application Fee

• A non-refundable application fee of ₹10,00,000 (Ten Lakh Rupees) must be paid.

• Payment modes include electronic transfer, demand draft, or banker’s cheque.

Disqualification Conditions

The following may lead to rejection of the application:

• Submission of incomplete or incorrect documents
• Non-payment of application fee
• Failure to meet eligibility or “fit and proper” standards
• Conflicts of interest or governance issues
• Inability to submit supporting proof within specified timelines

Application Submission Structure

Applicants must submit their proposal in three sealed envelopes:

Envelope 1 – Eligibility Documents

Includes undertakings, fit-and-proper declaration, financial credentials, and corporate certificates.

Envelope 2 – Technical Proposal

Includes business capacity details, investment capabilities, past performance, and operational readiness.

Envelope 3 – Commercial Proposal

Contains the Investment Management Fee (IMF) quotation, structured as per PFRDA rules.

Evaluation Process

PFRDA follows a multi-level evaluation system:

1. Completeness Verification
2. Eligibility Screening
3. Technical Evaluation
4. Commercial Evaluation
5. Final Appointment of Sponsor

Technical Evaluation Weightage

• Business Management – 25 marks
• Investment Capability – 25 marks
• Investment Track Record – 25 marks
• Due Diligence Factors – 15 marks
• Business Plan – 10 marks

Minimum score required: 70 marks

Investment Management Fee (IMF) Structure

The guidelines define a slab-based IMF cap:

Registration of Pension Fund (Post Sponsor Selection)

After being appointed as a Sponsor, the entity must:

• Incorporate a dedicated Pension Fund company
• Submit Memorandum & Articles of Association
• Provide board details, shareholding pattern, and net-worth certification
• Pay additional registration fees
• Receive the Certificate of Registration from PFRDA

Commencement of Business Requirements

After registration, the Pension Fund must:

• Start operations within six months
• Pay annual regulatory fees
• Undergo PFRDA inspections
• Obtain a Commencement of Business Certificate