The finance ministry has shortlisted Goldman Sachs Asset Management Company (AMC) and UTI Mutual Fund as the asset management company for the proposed public sector enterprise exchange traded fund (ETF).
The government had already selected ICICI Securities as the advisor for the proposed ETF. The CPSE ETF will have shares of some listed public sector companies & will serve as an additional mechanism to monetise governments shareholding in PSUs.
Both the candidates will make presentation next week & then a decision will be taken, said a finance ministry official, requesting anonymity. The government has set a target of Rs. 40,000 crore through divestment proceeds in this fiscal (2013-14).
The finance ministry holds the view that the ETF can be used as a year-round mechanism to divest stakes in public sector enterprises.
In 2012-13, the union government was able to raise Rs. 23,920 crore through stake sale in state-run companies.
Under the proposed mechanism, the government will pool the shares of different companies it plans to disinvest to create a fund, which will be sliced into smaller units. These units will then be listed on stock exchanges. The proposed ETF will have about 20 stocks, including that of blue chip PSUs like Coal India, NTPC, ONGC, and Oil India.
The centre government is hopeful that ETF mechanism will help minimise market disruptions usually seen during public offerings of shares of state-run companies.
An Empowered Group of Ministers (EGoM) on disinvestment will take a final call on the structure of the proposed ETF and the scrips which will be traded through the mechanism.
ETFs, however, have not been highly successful in India. Gold ETFs have made some headway though. Many global companies had evinced interest when the government had announced its PSU ETF.
No comments:
Post a Comment