New Delhi: The Finance Ministry is planning to launch an exchange traded fund (ETF) consisting of stocks of PSU banks and financial institutions this fiscal and will soon appoint an advisor to explore its feasibility, according to an official. After the success of CPSE ETF and Bharat-22 ETF, the government is looking at diversifying the ETF basket by including stocks PSBs and financial institutions. “We will be soon appointing advisor to suggest on launching an ETF with PSU bank scrips. The advisor will also look into the feasibility of including stocks of financial institutions and insurance companies into the basket,” the official said.
This comes on the back of the government seeing huge investor demand for two existing ETFs. It has raised Rs 32,900 crore through two tranches and an additional fund offer of Bharat-22 ETF, and Rs 38,000 crore in five tranches of CPSE ETF in the domestic market. Currently, there are two state-owned insurance companies — General Insurance Corp of India and New India Assurance Co Ltd — and 19 public sector banks that are listed on exchanges. Besides, financial institution IFCI is also listed on the exchanges.
