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The Central Public Sector Enterprises (CPSE) ETF will be revamped to make it more retail investor-friendly and is likely to be launched by October. The cash-rich Employees’ Provident Fund Organisation (EPFO) and National Pension Scheme (NPS) are also likely to invest in the fund, whose composition will be unchanged.
The ETF is likely to be re-launched before Diwali this year. Another tranche of CPSE ETF would help the government inch towards its Rs 69,500 crore disinvestment target in this financial year.
This includes Rs 41,000 crore from sale of minority stake and Rs 28,500 crore from strategic stake sale.
The government had first launched a CPSE ETF, comprising scrips of 10 public sector units (PSUs), in March 2014 under which retail investors have to invest a minimum of Rs 5,000 to buy units.
It had raised Rs 3,000 crore through the ETF then. The 10 PSUs which are part of the fund basket are Oil & Natural Gas Corp, GAIL India, Coal India, Indian Oil, Oil India, Power Finance Corp, Rural Electrification Corp, Container Corp, Engineers India and Bharat Electronics.
The disinvestment department had last year appointed Goldman Sachs, which manages the existing ETF, to look into the possibility of revamping it by changing unit sizes of the fund to make these smaller, encouraging individuals to participate more.
