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- The Central Government has raised over Rs 10,000 crore on a net basis from the 5th further fund offer(FFO) of the Central Public Sector Enterprises(CPSE) Exchange Traded Fund(ETF).
- The government aims to raise Rs 1.05 lakh crore through disinvestment in 2019-20 up from Rs 85,000 crore raised last fiscal.Disinvestment is defined as the action of an organisation or government selling or liquidating an asset or subsidiary.
- Government has constructed a fund to sell the shares in PSUs.It is called CPSE Exchange Traded Fund.The CPSE ETF is managed by Reliance Nippon Life Mutual Fund.
- CPSE ETF comprises shares of the 11 public sector undertaking companies which are (a)ONGC (b)Coal India (c)IOC (d)Oil India (e)PFC (f)REC (g)Bharat Electronics (h)NTPC (I)SJVN (j)NLC and (k)NBCC.
- Exchange Traded Funds(ETF) are index funds that are listed and traded on stock exchanges just like regular shares.They are a basket of stocks with assigned weights that reflect the composition of an index.
- The ETFs trading value is based on the net asset value of the underlying stocks that it represents.The ETF is aimed at helping speed up the government’s disinvestment programme.
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