With an objective to facilitate acceptance of subscriptions for Further Fund Offer (FFO) of a central public sector enterprise (CPSE) exchange-traded fund (ETF), the National Stock Exchange (NSE) has introduced an online facility for the investment and subscription of ETF on its e-IPO (initial public offering) platform.
"An online facility for the investment and subscription of ETF shall be available to trading members of the capital market segment with valid ARN on existing web-based e-IPO platform," the NSE said in a circular.
The move comes after the NSE received approval from the Securities and Exchange Board of India (Sebi) to extend its stock exchange mechanism currently being used for accepting subscriptions for Sovereign Gold Bonds (SGBs) to FFO of CPSE ETF.
The issue size of FFO, which will open on January 17 and close on January 20, is Rs 4,500 crore with a greenshoe option of Rs 1,500 crore.
Central Public Sector Enterprises Exchange ETF, which functions like a mutual fund scheme, comprises scrips of 10 PSUs — ONGC, Coal India, IOC, GAIL (India), Oil India, PFC, Bharat Electronics, REC, Engineers India and Container Corporation of India.
The FFO is open for all categories of investors including anchor, retail, retirement funds, QIBs, non-institutional investors and Foreign Portfolio Investors (FPIs). An upfront discount of 5 per cent is being offered to all categories of investors.