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| BSE allows trade in Nifty ETFs |
| Rajesh Bhayani / Mumbai Oct 10, 2009, 00:52 IST |
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The Bombay Stock Exchange’s (BSE’s) benchmark index, the Sensex, may be more talked about and valuable as a brand compared with the National Stock Exchange’s (NSE’s) Nifty, but the latter brings more business for NSE. Now, the Nifty may bring business for BSE, too, as the country’s oldest exchange has decided to allow trading in all exchange-traded funds (ETFs) listed on its rival exchange. These include Nifty-based ETF.
BSE has allowed ETFs listed on NSE to be traded on its platform as permitted securities. For this, the promoter of the ETF will not have to pay any listing fee. BSE, around two weeks ago, allowed trading in NSE’s gold ETFs. On October 7, it gave permission for trading of all NSE’s ETFs, including Nifty Bees, which reflects the Nifty’s movements. ETFs are passive mutual funds and the portfolio reflects the changes in underlying assets.
As of now, 18 ETFs are traded on BSE, which include two funds based on the Sensex launched by ICICI Prudential and Kotak MF and 16 others, of which six are gold funds. Of the 16 ETFs listed on NSE, the total daily volume is miniscule at around Rs.25 crore.
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