The Indian government has launched an exchange-traded fund of central public sector enterprises, to raise 3,000 crore rupees for its disinvestment plan.
This is an open ended scheme, comprising shares of 10 central PSEs including ONGC, GAIL India and COAL India.
It tracks an index fund, but trades like a stock on the exchange.
The new fund offer opened for subion yesterday for anchor investors, or those investing above 10 crore rupees, and will open for non-anchor and retail investors today.
The offer for non-anchor investors will close on the 21st of this month.
The Cabinet Committee on Economic Affairs, CCEA had cleared the scheme last year.
This is a kind of mutual fund where you invest in the fund and the fund in turn invest in public sector company shares. This fund is really in the lines of similar ETFs which are there in Singapore and in Hongkong.
In time this will also be used to offload a public sector company shares in the market.
It is being found that middle class people have always sought face avenues of investment in the stock market.
Its rate of return may actually be slightly higher than the Sensex but there is always a downside risk.
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Business EditorIndian government to raise 3,000 crore rupees for its disinvestment plan
by Business Editor ( Author at Spirit India )
Posted on March 19th, 2014 at 10:30 am.
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