The guidelines set by the Department mandate that companies worth Rs 2,000 crore, and cash and bank balance more than Rs 1,000 crore have to mandatorily buy back shares.

Subscription has come in for over 2 times of the base issue size of Rs 6,000 crore. The total bids that has come in so far is for Rs 12,500 crore and one lakh applications have come in, market sources said.

Amit Kachroo, Managing Partner at Aaneev Wealth  talks about the newly launched Bharat 22 ETF further fund offer and the merits and demerits of investing in the fund.

On Tuesday, the government launched the FFO of Bharat-22 Exchange Traded Fund (ETF), comprising shares of 22 companies. The issue received subscriptions from investors such as mutual funds houses, foreign portfolio investors (FPI), insurance and retirement funds.

ICICI Prudential Asset Management Company is managing the launch of Bharat 22 ETF which is being offered at 2.5% discount to all the investor categories.

Compared to its counterpart CPSE ETF which was launched in March 2014, the Bharat-22 Exchange Traded Fund (ETF) is more diversified with blue chips such as ONGC, SBI, IOC, Nalco, BPCL, NTPC and Bank of Baroda as well as SUUTI shares in entities such as ITC, Axis Bank and L&T.

Around 15.41 crore shares of the ETF changed hands on the NSE with the fund clocking trade worth Rs 57,393 lakh till 10: 24 am. On the BSE, the open-ended exchange traded fund got listed at 36.30 per unit, a 0.91 per cent premium over its issue price of Rs 35.97 per unit.

The 8,000 crore Bharat22 Electronic Traded Fund was subscribed four times, seeing bids of nearly Rs32,000 crore coming in, with foreign institutional investors (FIIs) bidding forone-third of the money.

The ETF saw bids of nearly Rs 32,000 crore coming in, with FIIs bidding for one-third of the money.