ICICI Prudential MF has appointed Asia Index, a joint venture between S&P Dow Jones and BSE, to design and maintain the index for the new ETF comprising shares of CPSE and other corporate entities, says a press release issued by the BSE.
Earlier, Department of Investment and Public Asset Management (DIPAM), Ministry of Finance had appointed ICICI Prudential AMC to manage the new ETF. This new ETF will serve as an additional mechanism for the government to monetize those CPSEs and other corporate entities which will eventually form part of the ETF basket.
The government’s first CPSE ETF was launched by Goldman Sachs AMC in April 2014 which will now be managed by Reliance MF. The ETF had raised Rs. 3,000 crore.
“Divesting from publicly listed companies has been a key agenda item for the government. We are delighted to partner with ICICI to create a new vehicle for the disinvestment process as well as increasing the passive investing footprint in India.” said Alka Banerjee, MD & CEO, Asia Index Pvt. Ltd.
“We are extremely pleased to be a part of this venture and provide a platform to grow the passive investing experience for the retail investor.” said Ashish Kumar Chauhan, MD & CEO, BSE Ltd.
ICICI Prudential AMC manages Rs. 2.17 lakh crore (as on August 31, 2016).
