Mutual fund industry, which has been eagerly looking forward to the launch of Debt Exchange Traded Funds (ETFs) this year, may have to wait a little longer.
"We are working on debt ETFs. If it is not launched in this (financial) year, it will be launched in FY21," said a Finance Ministry official on condition of anonymity.
He also said that the government has not yet given a go-ahead for launching Debt ETFs.
The Finance Ministry is also planning to include Central Public Sector Enterprises (CPSEs) with AAA-rated bonds.
Apart from bonds, the proposed debt ETF may also comprise credit-linked note, debentures and promissory notes as underlying instruments issued by participating CPSEs.
In the Union Budget for FY19, the government had announced plans for debt ETF after the success of equity ETFs like CPSE ETF and Bharat-22 ETF.
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