The benchmark asset management company's exchange traded fund (ETF) -- Nifty BeES -- will start trading on the National Stock Exchange from Tuesday. With this, India will become the first emerging economy in Asia to launch an ETF.
While Benchmark AMC will become the first company in Asia (excluding Japan) and only eighteenth company worldwide to have issued an ETF. Worldwide, there are over 200 ETFs comprising around $100 billion in assets under management and over 60 per cent of the volumes from US stock exchanges.
Speaking at the press conference, S A Dave, chairman, Benchmark Trustee said, " I feel ETF will be extremely popular with Indian investors and will result in good volumes in line with similar instruments in some advanced countries."
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Benchmark AMC had raised Rs 21 crore through an initial public offer, which had closed on December 18. Nifty BeES will invest in all the 50 scrips constituted in the S&P CNX Nifty in the proportion of weightage given to them in the index.
The minimum investment for taking index exposure through the Nifty BeES will one unit. "The AMC has appointed seven NSE brokers as authorised participants to act as `market makers' for the scheme, Dave said.