Motilal Oswal Asset Management Company (Motilal Oswal AMC) has received approval from the Pension Fund Regulatory and Development Authority (PFRDA) to act as a sponsor of pension fund under the National Pension System (NPS).

Motilal Oswal AMC had filed an application with PFRDA seeking approval for the same.

Motilal Oswal AMC said that it will set up a separate pension fund entity that will act as an investment manager, overseeing the NPS contribution of subscribers and managing pension assets.

“Motilal Oswal AMC will undertake the necessary formalities including obtaining the Certificate of Registration and executing key agreements such as the Investment Management Agreement (IMA) with the NPS Trust, along with further arrangements with other custodians, intermediaries and parties,” the asset manager said in a release.

Upon completion, Motilal Oswal AMC will commence full-scale operations to act as a sponsor of pension fund under the NPS.

Motilal Oswal AMC said that the PFRDA approval will further strengthen its role in India’s financial ecosystem.

Prateek Agrawal, MD & CEO, Motilal Oswal AMC, said that as India’s financial ecosystem evolves, the need for disciplined, long-term retirement investment and planning is becoming critical for long-term financial security.

"Motilal Oswal AMC aims to bring a research-driven, high-conviction, and long-term investment approach, focused on delivering consistent performance for investors to build sustainable retirement wealth,” he said.

Motilal Oswal AMC, incorporated in 2008, is registered with SEBI as the Investment Manager for Motilal Oswal Mutual Fund.