Indian pension managers are requesting the industry regulator to ease rules on the maturity of corporate bonds they can purchase.
They want the cap on buying corporate bonds maturing in less than three years to be relaxed and permission to invest in bonds rated by only one credit agency.
The current investment limit for corporate bonds maturing in less than three years is 10%, with most requiring ratings from at least two credit agencies.
The growing pool of household savings in India has resulted in increased pension fund assets, leading to the need for more flexibility in investment strategies.