NSE introduces e-ETF facility under e-IPO module
Govt launched its first CPSE ETF in March 2014, taking ETF route to disinvestment for first time.
New Delhi: With an objective to facilitate acceptance of subscriptions for Further Fund Offer of CPSE ETF, NSE has introduced an online facility for the investment and subscription of exchange traded fund on its e-IPO platform.
National Stock Exchange (NSE) would conduct a mock session for new 'e-ETF' on e-IPO platform on January 13 and January 16-17 in order to familiarise with the new facility.
"An online facility for the investment and subscription of ETF shall be available to trading members of capital market segment with valid ARN on existing web based e-IPO platform," NSE said in a circular.
The move comes after NSE received approval from Sebi to extend its stock exchange mechanism currently being used for accepting subscriptions for Sovereign Gold Bonds (SGBs) to Further Fund Offer (FFO) of CPSE ETF.
The issue size of Further Fund Offer, which will open on January 17 and close on January 20, is Rs 4,500 crore with a greenshoe option of Rs 1,500 crore.
Central Public Sector Enterprises Exchange ETF, which functions like a mutual fund scheme, comprises scrips of 10 PSUs -- ONGC, Coal India, IOC, GAIL (India), Oil India, PFC, Bharat Electronics, REC, Engineers India and Container Corporation of India.
The FFO is open for all categories of investors including anchor, retail, retirement funds, QIBs, non-institutional investors and Foreign Portfolio Investors (FPIs). An upfront discount of 5 per cent is being offered to all categories of investors.
The government had launched its first CPSE ETF in March 2014, taking the ETF route to disinvestment for the first time. It had raised Rs 3,000 crore through the ETF then.