Motilal Oswal Asset Management Company Ltd, a wholly-owned subsidiary of Motilal Oswal Financial Services Ltd, 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. According to reports from CNBC TV18 and The Hindu BusinessLine, the approval was granted through a Letter of Appointment dated May 05, 2026, following the company's application under PFRDA's selection process for pension fund sponsors under its registration guidelines.
As part of the mandate, MOAMC will establish a separate pension fund entity to act as an investment manager, overseeing NPS contributions and managing pension assets in line with the PFRDA Act, 2013, and applicable rules and regulations. As reported by CNBC TV18 and The Hindu BusinessLine, the company will undertake 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. Upon completion, Motilal Oswal Asset Management Company Ltd will commence full-scale operations to act as a Sponsor of Pension Fund under the NPS.
Prateek Agrawal, MD and CEO of MOAMC, emphasized the strategic importance of this development, stating 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. According to CNBC TV18 and The Hindu BusinessLine, Agrawal noted that as Indians shift their financial habits, moving from a saver to an investor mindset, NPS inflows have also been growing steadily. Through their entry into India's NPS ecosystem, the company 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.
The company reported robust financial results for the fourth quarter, with operating profit rising 25% year-on-year to ₹661 crore, compared with ₹527 crore in the corresponding period last year. As reported by CNBC TV18, the asset & private wealth management business reported operating profit after tax growth of 48% to ₹338 crore on a year-on-year basis. In asset management (including alternates), profit after tax rose 63% year-on-year to ₹249 crore in Q4 and 55% to ₹798 crore in FY26. Total AUM increased 32% year-on-year to ₹1.76 lakh crore, driven by mutual fund AUM growth of 31% and private alternates AUM growth of 104%.
Shares of Motilal Oswal Financial Services Ltd ended at ₹881.40, up by ₹37.95, or 4.50%, on the BSE following the announcement. According to CNBC TV18, this positive market response reflects investor confidence in the company's strategic expansion into the pension fund management sector through its subsidiary's regulatory approval.
