Pension fund managers push back on new PFRDA bond rules
Pension fund managers in India aren't thrilled about the PFRDA's plan to change how some government bonds are valued.
The regulator wants to use a "held-to-maturity" (HTM) approach to smooth out short-term price swings for the $175 billion pension sector.
But fund managers worry this could mess with net asset values and make things less fair for investors.
Why does this matter?
Fund managers say forcing all plans to use HTM could hide real market changes and hurt people who stay invested if others cash out early.
They're asking for more choice, so only those who want HTM can opt in.
Meanwhile, the PFRDA is floating a dual system—using HTM for long-term bonds and regular market pricing for others—and is still gathering feedback from everyone involved.
If you care about where your future money sits or just like seeing how financial rules get made, this debate is worth watching.