Goldman Sachs to manage ETF of PSU firms

 PTI   New Delhi     Last Updated: April 16, 2013  | 23:12 IST

Global investment banker Goldman Sachs is believed to have been chosen for setting up the PSU Exchange Traded Fund (ETF) to help government achieve its disinvestment target.

The government had earlier shortlisted Goldman Sachs Asset Management and UTI Mutual Fund to act as asset management company (AMC) for the proposed ETF of the public sector enterprises.

"Goldman Sachs has been selected as fund manager for ETF," sources said. According to sources, the Cabinet is likely to soon consider the proposal of the Disinvestment Department to set up an ETF for the PSUs.

The government is planning is raise Rs 40,000 crore by way of PSU stake sale in the current fiscal and has lined up a host of companies, including Indian Oil, Engineers India and Coal India for divesting minority stake.

The ETF, which is expected to reduce volatility in shares of state-owned companies, would comprise 2-3 per cent of shares of listed public sector undertakings (PSUs).

The Empowered Group of Ministers (EGoM) on disinvestment would decide on the structure of the ETF and also the methodology for inclusion and exclusion of scrips from the fund, sources said.

  • Print

A    A   A