The scheme provides an opportunity for investors to be part of the top 10 PSUs - ONGC, Gail, Coal India, Indian Oil, Oil India, Power Finance Corp, Rural Electrification Corp, Container Corp, Bharat Electronics and Engineers India.
An ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.
While a 5 per cent upfront discount would be offered to all classes of investors, one loyalty unit will be allotted for every 15 units held by eligible retail individual investors.
The scheme is managed by Goldman Sachs India MF and will be listed on exchanges in the form of an ETF.
The CPSEs under the index have more than 55 per cent government holding under the promoter category and an average free-float market capitalisation of more than Rs. 1,000 crore for the six months ended June 2013.
Assets under management of ETFs in India have gone up to Rs. 11,807 crore in September 2013 from Rs. 1,396 crore in March 2009.
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