After the success of Further Fund Offers (FFOs) of CPSE ETF and Bharat 22 ETF, the department of Investment and Public Asset Management (DIPAM) has come out with a request for proposal (RFP) to launch its first debt ETF.
Fund houses are expected to submit their requests to DIPAM by December 24, 2018.
Debt ETF would comprise bonds, g sec, credit notes and debentures as underlying securities issued by CPSEs, PSBs and PSUs.
Fund houses having 5 years of experience in fund management and managing quarterly AUM of at least Rs.15,000 can apply to manage to debt ETFs.
Ministry of Finance will consider two parameters, quantitative and qualitative for the selection of the fund house. While quantitative parameter evaluates the fund houses on the basis of management fee,
the qualitative parameter gauges ability and experience of fund houses to manage debt assets and ETFs.