Pension Fund investment strategy must align with the long-term nature of pension liabilities, with the long-term safety of the Scheme as its primary objective. Investments must be diversified across asset classes, sectors, and geographies to reduce risk. Pension Funds must maintain sufficient liquidity for regular withdrawals and payments, establish a robust risk-management framework for investment decisions, exercise safety and prudence, and act as responsible stewards of Subscriber assets.

Healthcare benefit option permits a Pension Fund to enable a Subscriber to allocate part of pension contributions to a dedicated healthcare savings account. Information concerning the account must be included in the Scheme Information Document, and the option must comply with the requirements specified in the Second Schedule.

Expert valuers empanelled by Customs are to be consulted where specialist opinion is required for valuation or examination of precious and semi-precious stones. Referral for consignment valuation requires prior approval from the designated Assessment Group or Dock officer, and examination may be conducted under officer supervision. The Appraising Group must maintain a register recording Bills of Entry, valuer details, observations and remarks for each referral.

Every Subscriber may designate one or more persons to receive the accumulated corpus upon the Subscriber's death and may change an existing nomination. Nominated recipients may therefore be revised, and payment of the accumulated corpus is made to the person or persons nominated by the Subscriber upon the Subscriber's death.

Pension Fund portability permits a Subscriber to change Pension Fund no more than twice in each Financial Year. Interoperability with other pension systems may be established through a mechanism specified by the Authority, subject to bilateral agreements and applicable regulatory approvals.

Pre-retirement partial withdrawals are permitted after a five-year lock-in for specified purposes, subject to a limit based on the Subscriber's contribution; critical-illness withdrawals have no lock-in. Retirement, superannuation or vesting exits require a Systematic Withdrawal Plan after the applicable contribution period or age threshold. A minimum portion of the corpus must be used for the plan, with the balance payable as a lump sum, subject to a threshold-based full lump-sum exception. Early exits require a higher minimum allocation to the plan, while death benefits are fully payable to nominees or legal heirs.

Each pension fund Scheme must be constituted as a trust and requires prior approval for a new Scheme or any material modification to an existing Scheme. The filing must include the Scheme Information Document and other required information. Before filing, the Pension Fund must appoint a Trustee meeting fit and proper requirements. Each approved Scheme must be launched within twelve months from communication of approval.

Pension Funds may provide active-choice options allowing subscribers to select asset allocation within specified limits, and auto-choice life cycle funds that automatically shift investments from aggressive to conservative as retirement approaches. Every scheme must clearly define and disclose its investment objective, strategy and risk profile in the Scheme Information Document.

Pension Fund subscribers may determine the frequency and amount of their contributions. A Pension Fund may prescribe a minimum contribution amount only with the Authority's prior approval.

Pension Funds must maintain a fully functional office within the International Financial Service Centre, supported by secure technology, communications and data-storage infrastructure for investment management, risk management, compliance and administration. They must implement and regularly update internal policies on investment decisions, risk management, compliance and grievance redressal; comply with AML/CFT/KYC requirements; maintain defined roles and reporting lines ensuring segregation of duties; and continually comply with applicable legal and regulatory requirements.

Registration as a Pension Fund may be granted by the Authority after it is satisfied that the applicant meets the applicable eligibility criteria and requirements and has paid the applicable fee. Where deficiencies prevent registration, they must be communicated and the applicant allowed thirty days to rectify them. Failure permits disposal of the application with reasons. A certificate remains valid unless suspended, cancelled, or surrendered with Authority acceptance.

Furnishing of information for pension fund registration permits the Authority to require an applicant to provide additional information or clarification necessary for considering its application. The Authority may require personal appearance for representation or clarification and may inspect the applicant's office before granting a certificate of registration.

A Pension Fund must ensure at all times that its directors, Key Managerial Personnel and controlling shareholders satisfy the fit and proper criteria in the First Schedule. A person declared not fit and proper by a regulatory authority cannot seek registration or serve in those positions until the person satisfies that authority's fit and proper criteria.

Applicants must appoint at least two Key Managerial Personnel for Pension Fund functions, including fund and risk management, and a Compliance Officer reporting directly to the Board. These personnel must possess prescribed postgraduate or equivalent professional qualifications and relevant experience in pension, fund management, fund operations, investment banking, or asset management. A relevant bachelor's degree is accepted for individuals with more than ten years' relevant work experience.

Pension Fund registration requires an applicant to be a company incorporated in an International Financial Services Centre or, subject to prior comparable registration or regulation, a branch of an overseas company. The board must have at least four directors, including at least one-half independent directors, and the applicant and promoters must not be from specified high-risk jurisdictions. Applicants or their parent or associate entities require ten years' relevant financial-sector experience and must maintain minimum net worth of USD 1 million, at the parent level where applicable.

Pension fund registration requires prior receipt of a certificate of registration before any person may act as a Pension Fund. An entity seeking certification must file its application through SWIT, with prescribed fees and supporting documents. Applications must disclose corporate structure, audited financial standing, business plans, organisational setup, key personnel, and risk-management arrangements. Incomplete applications are not processed.

Regulation 3 defines the operational framework for pension funds, including contributions, Pension Accounts, trustees, units, custodians, Key Managerial Personnel and net worth. A Pension Fund is a registered entity that receives and accumulates subscriber contributions and makes payments to subscribers. Schemes must be voluntary, approved, and structured around distinct investment objectives, strategies and risk profiles. Scheme Information Documents must disclose material Scheme information. Subscribers must be individuals above 18 years who voluntarily join a Scheme and hold a Pension Account. Undefined terms adopt meanings under applicable governing enactments and regulations.

Regulation 2 establishes a framework for registration, regulation and supervision of Pension Funds in India's International Financial Services Centre. The framework supports long-term retirement savings, promotes a secure and transparent environment for subscribers, protects subscriber interests, and maintains the integrity of the pension ecosystem in IFSC.

International Financial Services Centres Authority (Pension Fund) Regulations, 2026 are made under the International Financial Services Centres Authority Act, 2019 and the Pension Fund Regulatory and Development Authority Act, 2013. The prescribed short title identifies the pension fund regulations, and commencement occurs from the date of publication in the Official Gazette. Gazette publication is the specified trigger for legal operation.

Employee service conditions govern appointments, recruitment, probation, pay, leave, promotion, conduct, discipline, retirement and benefits for whole-time, deputed and contractual employees. Recruitment is generally through competitive selection, while contract and deputation appointments may be used for work exigencies. The framework imposes confidentiality, conflict-of-interest and financial-dealing restrictions, and establishes suspension, penalties, inquiry procedures, appeals, revision and review.