Pension money to get into Indian equity markets.

The early moths of next fiscal year could see an additional Rs. 2500 crores flowing into the debt and equity markets and the entire corpus is domestic and for long-term investment. The money will come from the corpus held by the government under the New Pension System (NPS) applicable for the central government employees who joined the services on or after January 1, 2004. The major sum of this corpus will go to debt market but the equity market will also get substantial part. The NPS will ensure a steady flow of funds in the markets with a long time investment horizon and this will eventually minimize the dependency of markets on FIIs. As per the market estimates while contributions from central corpus will be around Rs. 2500 crores, 19 other states have also joined in the move and will deploy the pension fund money in the market taking the sum to around Rs 4000 crores. The works towards the deployment of the funds have already started. PFRDA mandated UTI Mutual Fund, Life Insurance Corporation of India and State Bank of India to act as fund managers. It will soon sign an agreement with National Security Depository Limited (NSDL), to act central record keeping agency (CRA). NSDL have already received nod from Securities exchange board of India (Sebi) to act as CRA.