Dipam to reconstitute Bharat 22 ETF, remove shares of 3 companies

Three stocks - Nalco, EIL, REC - to be removed from ETF

The Department of Investment and Public Asset Management (Dipam) will reconstitute its flagship exchange-traded fund — the Bharat 22 ETF — and remove shares of three companies — National Aluminum Co (Nalco), Engineers India Ltd (EIL) and Rural Electr­ification Corp — from it.  

The first two stocks will be removed from the ETF because any further offering of the financial product will take the government’s shareholding in Nalco and EIL to below 52 per cent, something it doesn’t want. 

REC will be removed because once Power Finance Corp completes its acquisition of the Centre’s stake in the REC, the latter will cease