Finance Ministry gears up to launch financial sector ETF, invites EoI to appoint advisor

 

New Delhi, Jun 27: The government is all set to launch a financial sector exchange-traded fund (ETF) and has invited expression of interest (EoI) for the appointment of an advisor on June 27.
The fund will consist of stocks of listed state-run banks, state-run insurance companies and state-run financial institutions.
The Finance Ministry has asked for ‘internationally reputed Sebi or RBI registered merchant or investment bankers, consulting firms, financial institutions and asset management companies’ to send in their proposals by 3:30 pm on July 26, 2019.
The firms can apply either singly or as a consortium. Companies that have been earlier involved in advisory or transaction capacity or have launched an ETF/MF/index-linked fund can also apply to assist the government in the process.
The decision comes after CPSE ETF and Bharat-22 ETF gained huge traction from investors. So far, the government has raised Rs 38,000 crore in five tranches of CPSE ETF that includes stocks of 11 public sector companies.
It has also raised Rs 32,900 crore through two tranches and additional fund offer of Bharat-22 ETF that has 16 public sector companies from six sectors.
Both CPSE ETF and Bharat-22 ETF are listed on domestic stock exchanges.
The government aims to raise Rs 90,000 crore via divestment in FY20, of which it has already raised Rs 2,350 crore. It had raised Rs 84,972 crore in the previous financial year.