There is a serious move from the SEBI Board Chairman Mr. U.K.Sinha to get the pension funds to be invested in the market.His argument is that it will be a long term fund for the markets. According to him, India is the only country which has prohibited pension funds from the market.
The employees who are the real investors and stakeholders of the pension fund have again and again objected to the investment of their hard earned money in the risky market. There have been several cases in the foreign countries where the pensioners had lost their entire money in the volatile markets. The Chairman of the Pension Fund Regulatory and Development Authority (PFRDA), Mr. Yogesh Aggarwal also share this opinion on the heavy risk.
The Government is under much pressure by the big business to get the pension funds invested in the market. The government itself seems to be in support of the same. Despite protests from the Left, the bill for PFRDA has been moved in the Parliament.
The situation is grave. It is only through sustained struggle that the workers will be able to stop the same, which is very much necessary to save the pension funds from being misused and lost.