European funds get NSE licence for ETFs

The National Stock Exchange (NSE) today said it has granted licences to three European funds to launch Exchange Traded Funds (ETFs) and was looking to enhance foreign participation through Indian Depository Receipts (IDRs).

"We have granted licences to funds in London, Frankfurt and Milan to launch ETFs on our 50-share index," NSE's managing director and chief executive officer Ravi Narain told reporters on the sidelines of a conference here.

The cumulative assets under management of the three funds would be about $400 million.

At present, the NSE has no proposal to launch futures on its main index in other markets, he said, adding, however, that the exchange might consider the proposal in future.

"There is no proposal of launching futures on the main index in other markets. We may think about it (later)," Narain said.

Last week, the Bombay Stock Exchange had launched futures on its main 30-share index on the US Futures Exchange.

On IDRs, Narain said the exchange was keen to see foreign corporates' listing of IDRs and the government has already revised guidelines for it.