The government is close enough to reach its disinvestment target of Rs 80,000 crore for the current fiscal year(2018-19).While,for the next fiscal (2019-2020),the government has set disinvestment target of Rs 90,000 crore.Disinvestment is defined as the action of an organisation (or government) selling or liquidating an asset or subsidiary.
Earlier,Government got Rs 10,000 crore from Bharat-22 exchange-traded funds and another Rs 5,379 crore from the sale of Specified Undertaking of Unit Trust of India stake in Axis Bank Ltd.
Bharat 22 is an ETF that will track the performance of 22 stocks of Central Public Sector Enterprises(CPSE’s),Public Sector Banks(PSB’s ) and strategic holding of SUUTI(Specified Undertaking of Unit Trust of India) which the government plans to disinvest.It is diversified across six sectors,such as(a)basic materials (b)energy (c)finance (d)FMCG (e)industrials and (f)utilities.
Bharat-22 ETF is being managed by ICICI Prudential AMC while Asia Index is the index provider.
Exchange Traded Funds (ETF) are index funds that are listed and traded on stock exchanges just like regular shares.They are a basket of stocks with assigned weights that reflect the composition of an index.
The ETFs trading value is based on the net asset value of the underlying stocks that it represents.The ETF is aimed at helping speed up the government’s disinvestment programme.