The PFRDA move will help channel long-term pension capital into productive Grade-A assets
FinTech BizNews Service
Mumbai, 11 December 2025: The Pension Fund Regulatory and Development Authority has issued a Master Circular to the CEOs of all Pension Funds & NPS Trust NPS Stake Holders.
The investment guidelines prescribed under this Master Circular shall apply to NPS Tier-I and Tier-II accounts in the Non-Government Sector (NGS). The NGS comprises all NPS sectors other than the Central/State Government (default), Corporate CG, NPS Lite and APY. This master circular supersedes the provisions of the earlier master circular 28.03.2025. 3. This master circular shall come into effect immediately.
Pension funds can now invest in REITs and InvITs, injecting significant liquidity into India's real estate and infrastructure sectors. This move by PFRDA expands investment options for NPS subscribers, channeling long-term capital into productive assets and supporting the growth of these crucial markets.
PFRDA’s Move is to Allow Pension Fund Investments in REITs/InvITs. Amit Shetty, CEO, Embassy REIT, explains:
“We welcome PFRDA’s move as an important step in strengthening India’s retirement savings framework. By widening investment choices for NPS subscribers to include high-quality debt, equity, infrastructure and real estate–linked instruments like REITs, the move will help channel long-term pension capital into productive Grade-A assets and support better retirement outcomes for millions of Indians. For India’s REIT market, this is a strong endorsement of the transparent, regulated yield products that institutions and individuals increasingly rely on, and a positive milestone in the deepening of our capital markets.”
