FM launches Bharat-22 ETF; to cover six sectors

ETF to have CPSEs, public sector banks and strategic holding SUUTI

Centre has set up a new exchange-traded fund Bharat-22 to sell government stakes in 22 firms under its asset sale programme, Finance Minister Arun Jaitley told reporters on Friday.

Bharat-22 ETF will consist of the government’s holding in SUUTI, CPSE ETF and PSU banks. It will cover six sectors.

The ETF will include 22 companies. Jaitley said that the ETF will have a single company cap of 15 per cent, and a sectoral cap of 22 per cent.

It will feature four banking stocks -- SBI, Axis Bank, Bank of Baroda and Indian Bank -- other than CPSEs such as Nalco, ONGC, IOC, BPCL and Coal India.

Besides, there will be nine other PSUs as well as REC and PFC. SUUTI's holding in ITC has also been included.

Ninety per cent of the equities included are traded in futures.

ICICI Prudential is the fund manager.

Weightage of various companies in the Bharat-22 ETF: 

• IOC, BPCL, NALCO to have 4.4% weight each in Bharat-22 Index

• Power Grid to have 7.9% weight in Bharat-22 Index

• Axis Bank to have 7.7% weight in Bharat-22 Index

• SBI to have 8.6% weight in Bharat-22 Index

• EIL to have 1.5% weight in Bharat-22 Index

• Power Fin to have 1% weight in Bharat-22 Index

• NBCC to have 0.6% weight in Bharat-22 Index

• SJVN to have 0.2% weight in Bharat-22 Index

• BEL to have 3.3% weight in Bharat-22 Index

• NLC India to have 0.3% weight in Bharat-22 Index

• Coal India to have 3.3% weight in Bharat-22 Index

• Indian Bank to have 0.2% weight in Bharat-22 Index

• NHPC to have 1.2% weight in Bharat-22 Index

• REC to have 1.3% weight in Bharat-22 Index

• ITC to have 15.2% weight in Bharat-22 Index

• ONGC to have 5.3% weight in Bharat-22 Index

• NTPC to have 6.7% weight in Bharat-22 Index

• Bank of Baroda to have 1.4% weight in Bharat-22 Index

• The finance minister also said that the Bharat-22 ETF will comprise the government’s holdings in SUUTI, CPSE ETF, and PSU banks