Government is planning to create a new Exchange Traded Fund comprising stocks of listed CPSEs and stakes in other corporate entities to monetise its holdings.
Government is planning to create a new Exchange Traded Fund comprising stocks of listed CPSEs and stakes in other corporate entities to monetise its holdings. The finance ministry has invited applications to engage an asset management company to create the new ETF.
The finance ministry invites “request for proposals (RFPs) to engage an asset management company for creation and launch of a new Exchange Traded Fund(ETF) comprising shares of listed CPSEs and other corporate entities”, an advertisement said.
The government is planning to create a new ETF, in addition to the existing CPSE ETF that was launched in March 2014. “The proposed new ETF will serve as an additional mechanism for the government to monetise its shareholdings in those CPSEs that eventually form part of the ETF basket,” it said.
The proposed ETF could be a new fund offer (NFO) followed by further fund offer (FFO)/tap mechanism/tranche or in other additional offering. “Government may provide appropriate discount for different investors in the form of a suitable mix of upfront and back-end loyalty discount,” the advertisement said.
The DIPAM will select and appoint one AMC with experience.
