Consider the followings regarding Central Public Sector Enterprises CPSE Exchange Traded Fund ETF 1 ...........

Economic Affairs Public Sector Enterprises

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Consider the followings regarding Central Public Sector Enterprises (CPSE) - Exchange Traded Fund (ETF).

1) Maximum limit for individual investors is 10 lakh rupees.

2) 10 companies are listed in ETF basket.

3) The scheme will help to improve the management of CPSEs.

Select the correct answer using codes given below

1 and 2

2 and 3

1 and 3

1, 2 and 3

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Explanation:

Third statement is incorrect i.e. Central Public Sector Enterprises (CPSE) - Exchange Traded Fund (ETF) scheme will help to improve the management of CPSEs.

A special type of mutual fund, Central Public Sector Enterprise Exchange Traded Funds (CPSE ETFs), was launched by the Government on 18th March 2014 to disinvest in the public sector firms. The notion behind this launch was that it would be a tool for the government to disinvest depending on market situations. The CPSE ETFs comprises of 10 companies – Oil and Natural Gas Corp. Ltd, GAIL (India) Ltd, Coal India Ltd, Rural Electrification Corp. Ltd, Oil India Ltd, Indian Oil Corp. Ltd, Power Finance Corp. Ltd, Container Corp. of India Ltd, Bharat Electronics Ltd and Engineers India Ltd. In order to analyze the role of these Exchange Traded Funds as a successful way of disinvestment of the Central Public Sector Enterprises, one needs to understand the concept, working, advantages and disadvantages of the whole scheme of investment.