Indian pension funds seek easier bond investment rules
Indian pension fund managers want the rules loosened so they can invest more flexibly in corporate bonds.
They're asking regulators to let them buy more short-term bonds (those maturing in under three years) and to accept bonds with just a single credit rating, instead of two.
With pension assets tripling to ₹14.4 trillion ($168 billion) in five years, managers say these changes would help them keep up with growth.
Why the change matters
Right now, strict rules limit where pension funds can put their money—especially since many companies only get one rating on their bonds.
This means fewer options and less diversification for people's retirement savings.
If the rules change, funds could invest in a wider range of companies, improve liquidity, and better support India's growing economy—all while aligning with broader regulatory reforms aimed at deepening the country's bond market.