Pension Funds must establish a risk management framework covering the key risk categories specified in the Fourth Schedule. Detailed methodologies for managing those risks must be set out in internal risk management policies and conform to the applicable requirements. Each Pension Fund must also implement a currency risk management policy, including hedging strategies where appropriate.

Every Pension Fund must establish and maintain a comprehensive enterprise-wide risk management framework approved by its Board. The framework must identify, measure, monitor and mitigate all material risks arising from and associated with Scheme management, and must be integrated into all aspects of the Pension Fund's operations.

Pension Funds must comply with concentration limits governing investment exposure to a single issuer and a single counterparty. The applicable limits are specified in Part B of the Third Schedule. These requirements form part of the investment-management and asset-allocation framework and require adherence to the Schedule-based limits for issuer and counterparty concentration.

Pension Funds must observe geographic diversification limits across India and global markets. Investments in India may reach the entire Scheme AUM. Investments outside India are capped per country at 20% of Scheme AUM, except the United States of America, subject to a 50% ceiling. Both direct and indirect investments are included in calculating exposure.

Permitted Pension Fund investments include listed public and private equities, fixed-income instruments, Alternative Investment Funds, frequently traded commodities, and cash and short-term instruments for liquidity management, together with financial products or instruments specified by the Authority. Class-specific and sub-class-specific limits apply under Part A of the Third Schedule, and each Scheme's limits must be determined accordingly and detailed in its Scheme Information Document.

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.

A Pension Fund may offer a healthcare benefit option within a Scheme, allowing a Subscriber to allocate part of the pension contribution to a dedicated healthcare savings account. Account information must be included in the Scheme Information Document, and the option must comply with applicable Second Schedule requirements.

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.

Fit and proper requirements oblige every Pension Fund to ensure that its directors, Key Managerial Personnel and controlling shareholders remain fit and proper at all times under the First Schedule criteria. Persons declared not fit and proper by a regulatory authority cannot seek registration or serve in the relevant capacity until they satisfy that authority's applicable 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.