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Cabinet nod to Bharat Bond ETF
Economy

Cabinet nod to Bharat Bond ETF

Agency News

New Delhi, Dec 4: The Union Cabinet chaired by Prime Minister Narendra Modi, on Wednesday approved launch of Bharat Bond Exchange Traded Fund (ETF) to provide additional money for CPSUs, CPSEs and other Government organizations, Finance Minister Nirmala Sitharaman said.

Rising reporters about the decisions of the Cabinet, Ms Sitharaman said ETF would be a basket of bonds Tradable on exchange and with small unit size of Rs 1,000. Other features of the ETF are a Transparent NAV (Periodic live NAV during the day), Transparent Portfolio (Daily disclosure on website) and its Low cost (0.0005 per cent).

She said that each ETF will have fixed maturity date. The ETF will track underlying Index on risk replication basis. Further, it will invest in a portfolio of bonds of CPSE, CPSU, CPFI or any other Government. organization. For now, it will have two maturity series: 3 and 10 years. (UNI)