New Delhi, August 4, 2017

ETF to have CPSEs, public sector banks and strategic holding SUUTI; to cover six sectors

Finance Minister Arun Jaitley on Friday announced a new exchange traded fund (ETF) called Bharat 2022.

Bharat-22 ETF will consist of the government’s holding in SUUTI, CPSE ETF and PSU banks.

It will cover six sectors.

The ETF will include 22 companies. Jaitley said that the ETF will have a single company cap of 15 per cent, and a sectoral cap of 22 per cent.

It will feature four banking stocks -- SBI, Axis Bank, Bank of Baroda and Indian Bank -- other than CPSEs such as Nalco, ONGC, IOC, BPCL and Coal India.

Besides, there will be nine other PSUs as well as REC and PFC. SUUTI's holding in ITC has also been included.

Ninety per cent of the equities included are traded in futures.

ICICI Prudential is the fund manager.

[The Business Standard]