Govt may come up with more ETFs after sound response to CPSE

After the encouraging response to CPSE ETF, government is mulling coming up with more such exchange traded funds comprising shares of public sector units as part of its divestment programme.

"May be in coming times, we will introduce more of such ETF products because the main idea behind launching the CPSE ETF was to do the disinvestment programme in a manner in which markets are not disrupted.

"So once having achieved that (purpose), this process can be taken forward," Joint Secretary of Department of Disinvestment Alok Tandon told reporters on the sidelines of listing of CPSE ETF on National Stock Exchange (NSE) here.

CPSE ETF, which comprises stocks of 10 public sector enterprises like ONGC, Gail (India), Coal India, REC, Oil India, Indian Oil, Power Finance Corporation, Container Corporation of India, Bharat Electronics and Engineers India, has witnessed encouraging response from investors.

The new fund offer, which was closed on March 24, has mopped up bids worth around Rs 4,400 crore against the government target of raising Rs 3,000 crore from the CPSE ETF.

As per Goldman Sachs India MF, which has launched this product and is managing it, around 40,000 investors have invested in this ETF out of which many are retail and new investors.

Many market participants are of the view that CPSE ETF is likely to attract more funds after its reopening.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Child abuse needs to be tackled with the seriousness it deserves

    The Bangalore rape case has again brought into focus an issue we Indians forever shy away from facing up to — child sexual abuse.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: THE BASE RATE BIAS

Base rate fallacy, also called base rate neglect or base ...

Parvez Imam

Revisiting history can do us all good

We often think that we understand history. We read it ...

Bubbles Sabharwal

Your happiness doesn’t depend on your needs

They are two different words (and even worlds) altogether: having ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture