Govt plans CPSE-ETF by October-November: Divestment Secretary Ravi Mathur

MUMBAI: The proposed CPSE-ETF (Central public sector enterprises-exchange traded fund) is likely to be launched by October-November, Disinvestment Secretary Ravi Mathur said here today.

"We propose to launch the CPSE-ETF by October-November," Mathur told reporters on the sidelines of a seminar on ETF organised by National Stock Exchange.

The fund has been proposed by the government, which will comprise shares of the listed PSUs, and will act as an additional mechanism for disinvestment process.

Mathur, however, said the government is yet to decide on PSUs which will be part of the index.

"We have not decided on components of the index. Though theoretically, all the 50 listed PSUs can be part of the index, how many of them will actually make it has to be decided," he said.

To make the ETF attractive for retail investors, the government is also planning to offer discounts and loyalty bonus, Mathur added.

On the market regulator Sebi's mandate of minimum public holding of 10 per cent for Central PSUs by August, Mathur said the government will be able to meet the deadline.

He also said the government has to go ahead with the divestment of Neyveli Lignite Corp to meet Sebi norms, despite opposition from unions and Tamil Nadu government.

When asked whether the department will allow Tamil Nadu state units to buy those shares, Mathur said he will look into the proposal.

Earlier this week, Tamil Nadu Chief Minister J Jayalalithaa had offered to purchase 5 per cent shares of Neyveli Lignite Corp, which is being sought to be divested by the Union government, to avoid labour unrest.

On meeting the disinvestment target of Rs 40,000 crore for this fiscal, Mathur said the government is confident of meeting the target.