Soon investors can boast of a portfolio consisting of shares of 11 blue-chip Central Public Sector Enterprises without any risk considerations. An empowered Group of Ministers (eGoM) under the chairmanship of Finance Minister P. Chidambaram has approved the composition of the Central Public Sector Enterprises Exchange Traded Fund (CPSE-ETF).

Alternative This fund will be used as an alternative to direct share sales of CPSEs. It will be listed on a stock exchange and trade like other shares on the bourse. Here, investors get the benefit of the constituent shares without directly owning it. Shares of companies, such as ONGC, Coal India, IndianOil and GAIL, would be among those that constitute the fund. Goldman Sachs has been assigned to manage the fund.

“It will be an open-ended scheme,” Disinvestment Secretary Ravi Mathur told reporters after the eGoM meeting here on Friday.

Mathur said a draft prospectus will be filed with the market regulator Securities and Exchange Board of India shortly. Once the approval is obtained, the scheme will be launched.

Difficult time The fund is being launched at a time when the Government is struggling to meet the disinvestment target of Rs 40,000 crore. Till now, it has mopped up less than Rs 3,000 crore.

The Disinvestment Secretary did not provide any direct answer on the target shortfall, but said he hoped the companies that are not being divested will give special dividends. For example, Coal India has called a board meeting next week to take a call on dividend. Coal India was originally listed for disinvestment, but strong opposition from the unions forced the Government to back off.

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