Tuesday, August 2 2005 14:28 Hrs (IST) - World Time -

New Delhi: Government today (August 1, 2005) said it would carefully consider proposals of a Parliamentary Standing Committee to allow FDI in pension sector on the pattern of the insurance sector.

"I have before me recommendations of the Standing Committee, which say the proportion of FDI that may be allowed in pension fund sector should be the same as in insurance sector. The recommendations will be carefully considered," Finance Minister P. Chidambaram said during Question Hour in Rajya Sabha.

Currently, the FDI limit in the insurance sector is limited to 26 per cent though there is a proposal to raise it to 49 per cent for which the IRDA Act needed to be amended.

The Finance Minister assured members that no law would be imposed and a full-fledged discussion on recommendations of the Standing Committee of Finance relating to pension fund would be held in both Houses.

"I will also discuss outside the House. Every point of view will be considered," the Minister said.

Chidambaram allayed fears of adverse effect of investment of pension fund in capital markets saying the proposed Pension Fund Regulatory and Development Authority would regulate the fund.

The Minister assured CPI-M member A.Vijayaraghavan that the note of dissension of the Standing Committee would also be considered.