Wednesday, March 23 2005 16:07 Hrs (IST) - World Time -

New Delhi: Bowing to the pressure of Left parties, Government today (Mar 23, 2005) referred the Pension Fund Regulatory and Development Authority (PFRDA) Bill to Parliamentary Standing Committee on Finance.

"The Government has decided to refer the Bill to the Parliamentary Standing Committee on Finance," Minister of State for Parliamentary Affairs, B K Handique, informed the Lok Sabha.

The PFRDA Bill, introduced in the House on Monday (Mar 21, 2005), seeks to replace the ordinance issued on December 29 to set up this regulatory authority.

Although the Government is assured of Opposition National Democratic Alliance (NDA's) support, it does not apparently want to antagonise Left parties by passing the legislation.

The Left parties are opposing the Bill as they do not approve pension funds being invested in capital market.

The move is seen as a step towards mollifying the Left parties, which had supported the Government in the passage of the Patents Bill.

As per rules any ordinance has to be replaced by a Bill within six months of its issue or within six weeks of Parliament being convened after its promulgation.

In such an event the ordinance will have to be replaced by a bill before April 8. Now, that the current session is adjourning tomorrow (Mar 24, 2005), the ordinance will lapse on April 8.