New Exchange Traded Fund announced -Governance Now

New Exchange Traded Fund announced

Compared to energy heavy CPSE ETF, Bharat 22 is a well diversified portfolio with six sectors

GN Bureau | August 8, 2017

#CPSE #Arun Jaitley #exchange traded fund #Bharat 22 index #ICICI Prudential AMC

Finance minister Arun Jaitley has announced a new Exchange Traded Fund (ETF) — BHARAT 22 which consists of 22 stocks of CPSE’s, public sector banks and strategic holding of SUUTI.

Compared to energy heavy CPSE ETF, Bharat 22 is a well diversified portfolio with six sectors (basic materials, energy, finance, FMCG, industrials and utilities). Bharat 22 Index will be rebalanced annually. A PIB release said that ICICI Prudential AMC will be the ETF manager and Asia Index Private Limited (JV BSE and S& P Global) will be index provider.

In the 2017-18 budget speech, Jaitley had promised to use ETF as a vehicle for further disinvestment of shares. The target for CPSE’s disinvestment in 2017-18 was set at Rs 72,500 crore. During the current FY 2017-18, the government has realised approx Rs 9,300 crore through nine disinvestment transactions so far.

ETF assets have grown significantly across the world. Globally, today there are $4 trillion worth Assets Under Management (AUM). These are expected to touch $7 trillion by 2021. Large Investors prefer investing in ETFs due to the benefits of ETF being low cost and less risky; being highly liquid assets; Transparent Investment and that these can be traded at real time market price.

Comments

Other News

BMC: 207 officials in ACB net, 112 still on duty, 68 retire before justice catches up

There are significant delays in the handling of corruption cases involving officials of the Brihanmumbai Municipal Corporation (BMC), a Right to Information (RTI) response obtained by rights activist Jeetendra Ghadge has revealed. As of 30 April 2026, 207 BMC officials face Anti-Corruption Bureau (A

The transformation trap: Why efficiency is not innovation

Every company is transforming, or so it claims. There was a time when the word ‘transformation’ carried weight. It signified bold strategic shifts, reinvention of business models, and breakthrough technologies that fundamentally changed how organizations created

The Sardar biography that throws light on our times

Patel: A Life By Rajmohan Gandhi Aleph Books, 568 pages, Rs 1,199 There are many biographi

Climate change, El Niño rewrite Indian monsoon

The month of July exceeded its rainfall target despite forecasts of a below-normal month under a strengthening El Niño. The reason could be that climate change is amplifying monsoon complexity: West Pacific warming, Western Disturbances and evolving ocean conditions increasingly interact with El Ni&

Mumbai has just 1.28 sq.m. of open space per person: Study

Mumbai`s public space crisis is as much about mismanagement as it is about scarcity, and offers a governance roadmap that can be implemented without new legislation, according to a new report by the Urban Design Research Institute (UDRI) and the NGO Alliance for Governance and Renewal (NAGAR).

Lok Sabha passes amendment bill to improve public examination system

The Lok Sabha on Wednesday passed the Public Examinations (Prevention of Unfair Means) Amendment Bill, 2026 by a voice vote after an extensive discussion. Replying to the debate, minister of state (independent charge) for science & technology; earth sciences and MoS in the PMO, Dr. Jite