The government is deliberating the idea of launching another exchange traded fund (ETF) after thundering success of CPSE ETF & Bharat -22 ETF. The government raised Rs. 38,000 crore through CPSE ETF & Rs 39,200 crore through Bharat-22 ETF. This time around they are looking to include stocks of public sector banks and financial institutions.

With two ETFs already listed on domestic exchanges. They do not intend to launch this new exchange traded fund in domestic market. Instead, they are looking to appoint an advisor to analyze its feasibility in international markets.

As on today, there are 19 PSU Banks that are currently listed on exchange. Beside these, two insurance companies (New India Assurance Co Ltd) & General Insurance Corp of India), & one financial institution (IFCI) are also listed on exchange.

The central government has pegged Rs 90,000 crore as disinvestment target in Budget for this fiscal (2019-20) as compared to target of Rs 80,000 crore they set for last fiscal year. Last year’s target was overachieved by mopping Rs 84,972 crore through dis-investments.

This is a step in right direction. Inadequate liquidity in the financial system is holding back India’s growth. This shall provide additional resources to PSU banks to overcome capital shortage.


By Sameer Rastogi

18 years of experience, PG in Finance and has delivered Wealth Management lectures at IIM Lucknow, IBS Gurgaon and IIPM Delhi. Contributed to various newspapers. Strength – Application of Economic fundamentals to Investment

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