The Cabinet today approved the launch of Bharat Bond Exchange Traded Fund or ETF, which would be be the first corporate bond ETF in the country. ETFs invest in a basket of securities representing an index, security or commodity and are traded on the stock exchange like any security listed on the exchange. Bharat Bond ETF will be a basket of bonds issued by central public sector enterprises and Will invest in a portfolio of bonds of CPSE, CPSU, CPFI or any other government organisation
Features of the Bharat ETF:
ETF to be basket of bonds issued by CPSE/CPSU/CPFI/any Govt organisation
Bonds to be tradable on exchanges
Transparent NAV (Periodic live NAV during the day)
Transparent Portfolio (Daily disclosure on website)
Fund to provide additional money for CPSUs, CPSEs and other government organizations
Each ETFs to have fixed maturity date
Will invest in a portfolio of bonds of CPSE, CPSU, CPFI or any other government organisation
For now, it will have two maturity series: 3 and 10 years
