'Launch date, issue quantum of Bharat-22 ETF finalised'

New Delhi, Oct 23 (IANS) The government on Monday finalised the launch date and the issuance quantum of the Bharat 22 Exchange Traded Fund (ETF) announced earlier this year, official sources said here.

Monday, October 23, 2017 | 9:24:04 PM IST (+05:30 GMT)
 0 Comments | By

New Delhi, Oct 23 (IANS) The government on Monday finalised the launch date and the issuance quantum of the Bharat 22 Exchange Traded Fund (ETF) announced earlier this year, official sources said here.

The sources said that an inter-ministerial committee headed by Finance Minister Arun Jaitley gave its approval to the ETF's tranche size and launch date proposed by the Department of Investment and Public Asset Management (DIPAM).

The Bharat 22 ETF comprising 22 companies, or investments, from among central public sector enterprises (CPSEs) and public sector banks (PSBs). is likely to be launched next month, the sources added without giving more details.

Petroleum Minister Dharmendra Pradhan, Urban Development Minister Hardeep Singh Puri, Railway Minister Piyush Goyal and Power Minister R.K. Singh are among the members of the committee.

Apart from CPSEs and PSBs, Bharat 22 also includes the government's strategic holding in Axis Bank, ITC and L&T held through the Specified Undertaking of Unit Trust of India (SUUTI).

The ETF is a well diversified portfolio of six sectors, which are basic materials, energy, financial, fast moving consumer goods (FMCG), industrial and utilities. No sector crosses the 20 per cent sectoral capping and there is a stock capping of 15 per cent.

The Bharat 22 Index will be rebalanced annually. ICICI Prudential Asset Management Company (AMC) will be the ETF Manager and Asia Index Private Limited will be the Index Provider.

An ETF is a traded security that tracks an underlying asset like a group of companies or commodity. The government had earlier approved the alternative mechanism through the ETF route to divest its stake in CPSEs.

The alternate mechanism will be used to take decisions for divestment through ETF for all listed CPSEs, subject to the government retaining a 51 per cent stake in them.

While the National Aluminium Co (NALCO) is the only firm in the basic materials category in the Bharat 22 ETF, the energy sector includes the giants ONGC, Indian Oil, BPCL and Coal India.

The finance sector companies include the State Bank of India and Axis Bank, where the government holds some stake, while the only firm included in the FMCG sector is ITC.

The government had raised Rs 8,500 crore through the CPSE ETF route in the last fiscal.

In his budget speech of 2017-18, Jaitley had promised to use ETF as a vehicle for further disinvestment of shares. The Centre has a disinvestment target of Rs 72,500 crore for the current fiscal, of which Rs 46,500 crore is planned to be raised through disinvestment, while Rs 15,000 crore is the target in the case of strategic disinvestment that involves surrender of government's majority control of the company.



Copyright : Indo-Asian News Service
User Rating Rating(0 Votes)

Share On :

Share on Facebook Share on Twitter Share on Google+ Share on WhatsApp

To stay updated with similiar articles follow

User Comments & Ratings

Join India Forums for free to comment on this story. Have an account already? Use Quick Login to comment.
Dear Readers,
  • Please do not use derogatory comments in reply to the stories published on Telly Buzz, India-Forums.
  • The credibility of the site matter to us, and the comments in bad taste tend to invariably hurt the actors/production house/channel etc.
  • So kindly, refrain from creating an unhealthy atmosphere for all, and keep your comments constructive.
  • Also, please use the Rate It button if you want to just thank the author for posting the story.

Articles in National, Business

Art - Culture Business Diaspora
Education Health Politics
Religion Sports Sci-Tech


Asia America Australia
Africa Europe Gulf-Middle East
Pakistan Nepal Bhutan
Sri Lanka Bangladesh Maldives

Disclaimer: All Logos and Pictures of various Channels, Shows, Artistes, Media Houses, Companies, Brands etc. belong to their respective owners, and are used to merely visually identify the Channels, Shows, Companies, Brands, etc. to the viewer. Incase of any issue please contact the webmaster.

Popular Channels :
Star Plus | Zee TV | Sony TV | Colors TV | SAB TV | Life OK

Quick Links :
Top 100 TV Celebrities | Top 100 Bollywood Celebs | About Us | Contact Us | Advertise | Forum Index