PFRDA proposes dual valuation for long-dated government securities in NPS and APY
PFRDA released a consultation paper proposing a dual 'accrual' and 'fair market' valuation framework for long-dated government securities held in NPS and Atal Pension Yojana schemes, with comments due by 30 November 2025 (PIB, 21 October 2025).
Summary
The Pension Fund Regulatory and Development Authority (PFRDA) released a consultation paper, dated 17 October 2025, on aligning valuation guidelines with the core objectives of long-only pension funds investing in government securities and on calculating Net Asset Value, PIB reported on 21 October 2025. It proposes a dual valuation framework, 'accrual' and 'fair market', for long-dated government securities held in NPS and Atal Pension Yojana (APY) schemes. The aims are to show stable pension wealth growth to subscribers, reduce the effect of short-term interest-rate swings on scheme NAV, and align pension investments with long-term infrastructure financing. Comments are invited until 30 November 2025.
Key facts
- Regulator
- PFRDA
- Paper dated
- 17 Oct 2025
- Proposal
- Dual valuation — accrual and fair market
- Applies to
- Long-dated G-Secs in NPS and APY
- Comments by
- 30 Nov 2025
Practice MCQs 2 questions
PFRDA's October 2025 consultation paper proposes which valuation approach for long-dated government securities held in NPS and APY?
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Correct answer: A — Dual valuation — accrual and fair market
PIB: the consultation paper proposes adoption of a dual valuation framework ('accrual' and 'fair market') for long-dated G-Secs held in NPS/APY.
Consider the stated purposes of PFRDA's dual valuation proposal (October 2025). Which of the following is NOT one of them?
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Correct answer: D — Raise the equity exposure limit for NPS schemes
PIB: the three purposes are stable depiction of pension wealth, reducing short-term interest-rate volatility on NAV, and aligning investments with long-term capital formation; raising equity limits is not mentioned.