Centre approves alternative mechanism for creation and launch of a New Exchange Traded Fund

| Updated: Jul 20, 2017 02:27 IST

New Delhi [India], July 19 (ANI): The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi on Wednesday authorized the Alternative Mechanism for creation and launch of a New Exchange Traded Fund. The Centre allowed to take decision for divestment through Exchange Traded Fund (ETF) out of all the listed CPSEs including CPSEs listed subsequently subject to GoI retaining 51percent in these CPSEs. The Prime Minister Modi led cabinet also gave nod to take decision on the divestment in respect of Public Sector Banks, other listed Public Sector Financial Institutions and Public Sector Insurance Companies (when listed) through ETF or other methods subject to GoI retaining 52 percent. Meanwhile the cabinet also allowed to take decision on matters related to divestment through ETF like constitution of ETF portfolio; the price/net asset value at which share of listed companies forming the ETF basket will be placed by the Govt. for divestment at the disposal of the ETF provider (AMC); the incentive structure for investors - upfront discount, loyalty bonus etc.; and any other aspect of pricing and the mode of disinvestment as required to be taken by the Government. (ANI)
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