CPSE exchange-traded fund 2.0 may include Suuti firms

Market players say this will make the ETF more attractive as the exposure would get diversified

The proposed new Central Public Sector Enterprises exchange-traded fund (CPSE ETF) might comprise private companies where the government holds the stake through Specified Undertaking of the Unit Trust of India (Suuti), along with other public sector units. There was speculation that the new ETF might include banks and companies such as Larsen & Toubro, ITC and Axis Bank in which Suuti holds stake the government has all but confirmed the development.

“The proposed new ETF will serve as an additional mechanism for the government to monetise its shareholdings in CPSEs and in other corporate entities,” the centre