Bharat Bond ETF anchor book over-subscribed 1.7 times; LIC also places bids

Fund could later look at instruments rated below the top-grade, if there is demand

The Rs 15,000-crore new fund offer (NFO) of Bharat Bond exchange-traded fund (ETF) that was launched on Thursday can also receive bids from insurers and private provident funds, as these large-ticket investors were allowed to participate in the NFO.

In a circular issued on Wednesday, the Insurance Regulatory and Development Authority of India allowed insurers to invest in debt ETFs where the underlying debt securities are of public sector units (PSUs). Through a gazetted notification, units of debt ETF meant for investment in PSUs were included in the list of 'debt investments' for non-government provident funds, gratuity and superannuation funds.