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Finance Ministry starts consultation with investors to launch global ETF

The government currently has two exchange-traded funds -- CPSE ETF and Bharat-22 ETF -- listed on domestic exchanges

Press Trust of India  |  New Delhi 

Second CPSE ETF to be more diversified

The Ministry has started consultation with global investors for launching CPSE-based Exchange Traded Fund (ETF) in overseas market in the current fiscal, a government has said.

The (DIPAM) will start developing the index for the based on investors' feedback about demand of sector specific stocks.

"We are eyeing large overseas pension funds for investments into the overseas We will soon appoint fund managers for developing the new Global roadshows have seen good interest in ETF route for investments into CPSEs," the said.

The government currently has two -- CPSE ETF and Bharat-22 ETF -- listed on domestic exchanges. ETFs function like a mutual fund scheme and have underlying assets of government-owned companies.

Bharat-22 ETF, which was launched in 2017-18, has 16 central public sector enterprises covering six sectors, 3 public sector banks and 3 private sector companies where the government holds minority stake.

CPSE-ETF comprises shares of 11 companies -- ONGC, Coal India, Indian Oil Corp, Power Corp, REC, Bharat Electronics, Oil India, NTPC, (India), and SJVN Ltd.

The government has already raised Rs 32,900 crore through two tranches and an additional fund offer of Bharat-22 ETF, and Rs 38,000 crore in five tranches of CPSE ETF in the domestic market.

The government has budgeted to collect Rs 90,000 crore through CPSE disinvestment in the current fiscal as against Rs 85,000 crore mopped up in 2018-19.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sun, April 28 2019. 12:00 IST
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