Govt to provide 3 per cent discount on ETFs

The joint secretary of Department of Investment and Public Asset Management (DIPAM), Anuradha Thakur announced at the launch of ICICI Prudential MF Bharat 22 ETF that the investors will be getting a discount of 3 per cent on Bharat 22 ETF during its new fund offer (NFO). The government plans to divest its stake in 22 companies through ICICI Prudential MF Bharat 22 ETF.
 
The new fund offer will open for subscription on November 15 and closes on November 17 for non-anchor investors that comprise retail investors and HNIs.
 
Unlike the earlier ETFs which have sectoral focus, this ETF has a diversified portfolio with exposure to six sectors including basic materials, energy, finance, FMCG, industrials and utilities. The Bharat 22 comprises of 22 stocks of Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSBs) and strategic holdings of Specified Undertaking of the Unit Trust of India (SUUTI). The Bharat 22 index is likely to be rebalanced annually.
 
The Bharat 22 includes public sector companies such as National Aluminium, ONGC, Coal India, IOC, BPCL, SBI, Axis, Bank of Baroda, Rural Electrification Corporation, Power Finance Corporation, Indian Bank, ITC, Bharat Electronics, Engineers India NBCC, Power Grid, NTPC, Gail India, NHPC, NLC India and SJVN, with the majority of shares of the companies belonging to the Government of India.