Date: 2025-10-17Category: Public Private Partnership in IndiaState: Union GovernmentCountry: India
PFRDA releases Consultation Paper on 'Alignment of Valuation Guidelines with the core objectives of Long-only Funds when investing in Government Securities and calculation of Net Asset Value (NAV)' for Public Feedback
**Executive Summary**
PFRDA released a Consultation Paper on October 17, 2025, proposing alignment of valuation guidelines for long-only funds investing in government securities, focusing on Net Asset Value (NAV) calculation. The goal is to improve governance, protect subscriber interests, and contribute to financial growth. Stakeholders are invited to provide feedback by November 30, 2025.
**Key Points / Main Content**
* **Consultation Paper Overview:**
* Released by PFRDA on October 17, 2025.
* Focuses on 'Alignment of Valuation Guidelines' for long-only funds investing in Government Securities and calculation of Net Asset Value (NAV).
* Proposes adoption of dual valuation framework ('accrual' and 'fair market') for long-dated Government Securities in NPS/APY.
* **Objectives of the Dual Valuation Framework:**
* Depict stable and simplified pension wealth accumulation to subscribers.
* Reduce the impact of short-term interest rate volatility on scheme NAV.
* Align pension fund investments with long-term capital formation.
* **Invitation for Stakeholder Comments:**
* Consultation paper is available on the PFRDA website under "Research and Publication".
* Feedback is sought from all stakeholders.
* Deadline for submitting comments: November 30, 2025.
**Impact Analysis**
**Stakeholders: NPS Participants, Prospective Subscribers, Pension Funds, Industry Experts, Academia, General Public**
**Impact:**
* Will be affected by changes to valuation guidelines for long-only funds investing in government securities and NAV calculation.
* May need to adjust investment strategies and expectations based on the new framework.
**Action Required:**
* Review the Consultation Paper on the PFRDA website.
* Provide comments, inputs, and feedback on the proposals by November 30, 2025.
Key Entities Referenced
Pension Fund Regulatory and Development Authority (PFRDA): The primary regulator of pension funds in India, responsible for releasing the consultation paper.
Consultation Paper on 'Alignment of Valuation Guidelines with the core objectives of Long-only Funds when investing in Government Securities and calculation of Net Asset Value (NAV)': The key document outlining proposed changes to valuation guidelines and seeking public feedback.
Government Securities: The type of investment the Consultation Paper focuses on, particularly in relation to valuation guidelines.
Net Asset Value (NAV): A financial metric directly addressed in the consultation paper, concerning its calculation for public feedback.
NPS/APY: National Pension System and Atal Pension Yojana, schemes for which the consultation paper's proposals are relevant.
PRESS RELEASE
FOR IMMEDIATE RELEASE
PFRDA releases Consultation Paper on 'Alignment of Valuation Guidelines with the
core objectives of Long-only Funds when investing in Government Securities and
calculation of Net Asset Value (NAV)' for Public Feedback
New Delhi, 17th October, 2025 – The Pension Fund Regulatory and Development
Authority (PFRDA) has released a comprehensive Consultation Paper titled “Alignment
of Valuation Guidelines with the core objectives of Long-only Funds when investing
in Government Securities and calculation of Net Asset Value (NAV)”. The framework
proposed is part of PFRDA’s ongoing commitment towards improving governance,
protecting subscriber interests and contributing for India’s broader financial and
infrastructural growth.
The Consultation Paper, dated October 17, 2025, proposes adoption of dual valuation
framework (‘accrual’ and ‘fair market’) for long dated Government Securities held in
NPS/APY to achieve three key purposes:
1. Depict stable and simplified pension wealth accumulation to subscribers during the
accumulation phase.
2. Reduce the impact of short-term interest rate volatility on scheme NAV, since such
fluctuations do not materially affect subscribers during the accumulation phase.
3. Align pension fund investments with long-term capital formation, boosting
stakeholder confidence by funding productive, long-gestation infrastructure assets.
Overall, the framework aims to present pension wealth accumulations more clearly to
subscribers while ensuring long-term financial stability and economic relevance.
Invitation for Stakeholder Comments
The consultation paper is available on PFRDA website under the tab Research and
Publication. (https://pfrda.org.in/en/web/pfrda/consultation-papers). PFRDA is seeking
feedback on the proposal from all stakeholders, including NPS participants, prospective
subscribers, pension funds, industry experts, academia and the general public.
The Authority encourages thorough review and constructive inputs on the proposals to
ensure the successful development and implementation of the schemes regulated by
PFRDA.
Stakeholders are requested to submit their comments, inputs and feedback on aforesaid
the consultation paper latest by 30th November 2025.
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