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Business News/ Money / Personal Finance/  Cabinet approves launch of Bharat Bond Exchange Traded Fund (ETF)
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Cabinet approves launch of Bharat Bond Exchange Traded Fund (ETF)

This will be the first corporate bond ETF in the country
  • It will help in deepening the bond market in India
  • Bharat Bond ETF to be basket of bonds issued by CPSE/CPSU/CPFI/any Govt organisationPremium
    Bharat Bond ETF to be basket of bonds issued by CPSE/CPSU/CPFI/any Govt organisation

    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

    Small unit size 1,000

    Transparent NAV (Periodic live NAV during the day)

    Transparent Portfolio (Daily disclosure on website)

    Low cost (0.0005%)

    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

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    Published: 04 Dec 2019, 12:55 PM IST
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