CABINET APPROVES ALTERNATIVE MECHANISM FOR CREATION AND LAUNCH OF A NEW ETF

posted by: corporate

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has authorised the Alternative Mechanism on the following:

i. To take decision for disinvestment through Exchange Traded Fund (ETF) out of all the listed CPSEs including CPSEs listed subsequently subject to GOI retaining 51% in CPSEs;

ii. To take decision on the disinvestment in respect of Public Sector Banks, other listed Public Financial Institutions and Public Sector Insurance Companies (when listed) through ETF or other methods subject to GOI retaining 51%; and

iii. To take decision on matters related to disinvestment 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 disinvestment at the disposal of the ETF provider (AMC); the investor 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.