ONGC, BHEL, CIL and NTPC to kick-start 'Divestment ETF', a move to help government raise Rs 4,000 crore

Oil & gas producer ONGC, mining major Coal India, power generator NTPC and power equipment maker BHEL could be among the state-run companies that are expected to constitute the much-awaited 'disinvestment ETF'. The Department of Disinvestment (DoD), which has received several suggestions on the concept note it circulated on the operationalisation of 'disinvestment ETFs', is likely to finalise the ETF structure by including top PSUs like ONGC and Coal India. The ETF structure will have about 25-30 PSU stocks - many of which could be small and less popular PSUs. "The earlier plan was to float an ETF with lesser-known PSU companies like Hindustan Copper, HAL and Rashtriya Ispat Nigam as underlying shares. However, keeping in mind low investor appetite for equities and bad market conditions, the department has decided to include big companies in the ETF structure," said a senior DoD official. more at: http://economictimes.indiatimes.com/news/economy/finance/ongc-bhel-cil-and-ntpc-to-kick-start-divestment-etf-a-move-to-help-government-raise-rs-4000-crore/articleshow/16023140.cms