India’s pension sector regulator, the Pension Fund Regulatory and Development Authority (PFRDA), has announced a significant change for National Pension System (NPS) subscribers, effective July 1.Under the new rule, settlements for NPS transactions will shift to a T+0 system.In this system, trades in shares are settled on the same day they occur, implying that shares will be promptly transferred to the buyer's account, while funds will swiftly be deposited into the seller's account.According to PFRDA, contributions received by the Trustee Bank until 11 am on any settlement day will be invested on the same day, allowing subscribers to benefit from the same-day Net Asset Value (NAV).Earlier, contributions were invested on the next settlement day (T+1), meaning there was a delay of one day before investments were made.Additionally, D-Remit contributions received by 9:30 am were already considered for same-day investment.Now, contributions received via D-Remit until 11 am will also be invested on the same day, using the applicable NAV.PFRDA has advised Points of Presence (PoPs), Nodal Offices, and NPS Trust for eNPS to adjust their operations accordingly to ensure timely benefits for subscribers.This change aims to streamline the investment process and enhance the efficiency of NPS transactions.
India’s pension sector regulator, the Pension Fund Regulatory and Development Authority (PFRDA), has announced a significant change for National Pension System (NPS) subscribers, effective July 1.Under the new rule, settlements for NPS transactions will shift to a T+0 system.In this system, trades in shares are settled on the same day they occur, implying that shares will be promptly transferred to the buyer's account, while funds will swiftly be deposited into the seller's account.According to PFRDA, contributions received by the Trustee Bank until 11 am on any settlement day will be invested on the same day, allowing subscribers to benefit from the same-day Net Asset Value (NAV).Earlier, contributions were invested on the next settlement day (T+1), meaning there was a delay of one day before investments were made.Additionally, D-Remit contributions received by 9:30 am were already considered for same-day investment.Now, contributions received via D-Remit until 11 am will also be invested on the same day, using the applicable NAV.PFRDA has advised Points of Presence (PoPs), Nodal Offices, and NPS Trust for eNPS to adjust their operations accordingly to ensure timely benefits for subscribers.This change aims to streamline the investment process and enhance the efficiency of NPS transactions.
