The government has appointed Edelweiss Mutual Fund as the asset manager for the proposed debt ETF catering to the borrowing needs of CPSEs and other public sector entities.
Debt ETF would comprise bonds, g sec, credit notes and debentures as underlying securities issued by CPSEs, PSBs and PSUs.
Last month, the Department of Investment and Public Asset Management (DIPAM) had invited proposals for creating, managing and launching the debt exchange-traded fund.
In a press release, Radhika Gupta, CEO, Edelweiss Asset Management said, “We are very excited about this opportunity to launch India’s maiden debt ETF focused on CPSEs and PSUs. Our endeavour is to launch an innovative product that will help retail and institutional investors increase their participation in the bond market, particularly retail investors whose participation is relatively small in debt mutual funds. Our focus will be to bring to market a product that is easy to understand, has the liquidity of ETFs and is tax efficient.”