Govt plans global ETF to meet Rs 80,000 divestment target: Report

Exchange traded fund / Sell usd frsrallphlaurenspoloshirtssale.info For example, the OIH is an oil ETF that follows the OSX oil Index.Exchange-Traded Fund A security that represents all the stocks on a given exchange.

The Centre is planning to move its disinvestment programme overseas with an exchange traded fund (ETF), according to a report by The Times of India. The plan will help the government meet its FY19’s divestment target of Rs 80,000 crore.

An exchange traded fund is similar to a mutual fund, which comprises of a bundle of shares or bonds.

The report suggests that the Department of Investment and Public Asset Management (DIPAM) has already started exploring markets even as the plan may require regulatory tweaks.

“Details are yet to be worked out but we are exploring the option along with an ETF for central public sector enterprises,” sources told the newspaper.

The ongoing volatility in the domestic equity markets has forced the government to postpone its planned stake sales and some of the initial public offerings (IPOs).

The government has to reduce its stake in several listed companies to 75 percent to comply with Securities and Exchange Board of India (SEBI) norms.

It is also expected to go slow on its proposed stake sale in Axis Bank. The Centre was planning to raise Rs 7,000 crore by selling 4 percent of its stake in Axis Bank by early November.