The second tranche of the ETF may hit the market by the end of the next quarter, sources said.
Besides, a new ETF will be launched after the second tranche of the current ETF is issued, sources said, adding the new ETF will be different in composition from the previous one.
As part of disinvestment excercise, the proposed new ETF will serve as an additional mechanism for the government to monetise its shareholdings in those CPSEs that eventually form part of the ETF basket.
The 10 PSUs, which are part of the CPSE ETF basket are, ONGC, GAIL India, Coal India, Indian Oil, Oil India, Power Finance Corp, Rural Electrification Corp, Container Corp, Engineers India and Bharat Electronics.
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An ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.
The government aims to collect Rs 56,500 crore through disinvestment in PSUs in the next fiscal, as per the Budget for 2016-17.
In 2015-16, the Government was able to meet less than half of the disinvestment estimates at Rs 25,312 crore against the target of Rs 69,500 crore.
It had raised around Rs 24,500 crore in 2014-15 by selling stake in public companies, about Rs 16,000 crore in 2013-14 and Rs 23,960 crore in 2012-13.
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