Government banks on ETFs to sail through tough disinvestment target (Representative Image)
The government will depend heavily on resource mobilisation by selling its stake in public sector banks through the newly launched financial sector ETFs.
Government sources said that ETFs have been saviour for government disinvestment plan for the past few years and even in FY20, these exchange trade funds would help it to surpass the targets set for the year.
The NFOs and FFOs of these ETFs had received huge response from all categories of investors.
The total subscription received by the Centre from various ETFs launched so far stands at Rs 1.87 lakh crores and of this government has retained over Rs 51,000 crores in the last five years, said DIPAM in an estimation of the proceeds from such funds.
Recently DIPAM said keeping in view the encouraging response and demand for such product, the Government proposes to create and launch a new ETF in addition to the existing two ETFs, comprising stocks of listed PSBs, Public Sector Insurance Companies and public sector Financial lnstitutions.
