Live
- Trees take on myriad unique forms in Ompal Sansanwal's solo exhibition
- Party gives everyone opportunities: Punjab Congress chief at Faridkot campaign
- Nikhil, Dhruva & Nikeetaa secure titles in INAC 2024
- Swati Sharma completed 60 parikramas around Shivling to get scene right
- 189 plaints of MCC violations, 23 cases against hate speeches lodged in Karnataka
- Afridi, Chapman rise; Suryakumar remains No.1 T20 batter in latest ICC T20I rankings
- RBI issues red alert on illegal entities in forex market
- Defence Minister Rajnath Singh slams Congress over 'appeasement' politics
- WB moves SC against Calcutta HC order axing 25,753 school jobs
- Time is right for BJP to make an entry into Kerala: Amit Shah
Centre approves ETF for bonds
After exchange traded fund for equities, the Union Cabinet on Wednesday approved the launch of exchange traded fund (ETF) for bonds to create an additional source of funding for Central Public Sector Enterprises (CPSEs) and State-owned financial institutions.
New Delhi: After exchange traded fund for equities, the Union Cabinet on Wednesday approved the launch of exchange traded fund (ETF) for bonds to create an additional source of funding for Central Public Sector Enterprises (CPSEs) and State-owned financial institutions.
The New Fund Offer (NFO) of this ETF is expected to be launched during December itself. Bharat Bond ETF would be the first corporate bond ETF in the country. "With the creation and launch of umbrella ETF we hope to diversify investor base," Finance Minister Nirmala Sitharaman told reporters after the Cabinet headed by Prime Minister Narendra Modi gave in-principle approval to bond ETF.
It will help deepen bond market as was announced in the Budget, she said. ETF will be a basket of bonds issued by state firms or any government organisation, and will be tradable on exchange, she said, adding that the unit size will be of Rs 1,000, allowing small investors to invest.
Each ETF will have fixed maturity date and will track underlying index on risk replication basis, she said, adding that for now it will have two maturity series -- 3 and 10 years -- with a low cost of 0.0005 per cent.
