NSE plans to launch more commodity ETFs
Updated: Oct 26, 2015 04:35:35pm
Mumbai, Oct 26 (KNN) The National Stock Exchange (NSE) is planning to launch more commodity exchange traded fund (ETFs) in the next few months, Chitra Ramakrishna, MD and CEO, NSE, said here during the 'India ETF Conference 2015'.
NSE today organized first of its kind 'India ETF Conference 2015' with an objective to bring in the different stake holders and to hear some of the International ETF experts. The conference expected to take Indian ETF market to the next level.
An ETF is like a mutual fund which issues units and closely tracks the price of an underlying security (like stock or a commodity), but can be traded on an exchange platform. India mostly has equity, gold and gilt ETFs, but globally, the ETF industry offers products on other commodities and fixed income securities.
“NIFTY ETFs is one of the oldest and the most popular ETF in India. NSE has 97% market share in AUM of equity based ETF. There are 11 Equity ETFs Nifty 50 in India and 6 ETFs on Nifty 50 are listed abroad in global markets,” according to an official release.
While congratulating National Stock Exchange of India on this momentous occasion, U K Sinha, Chairman, Sebi said that “This is a very opportune time to start such discussion. An ETF is almost like a mutual fund with a secondary market. The markets have grown 12 times in last 12 years in India. A stage has come when along with Employee Provident Funds others funds can look at ETF too. The big plus for ETF is the cost of trading”.
Chitra Ramkrishna, MD & CEO, NSE said that “NSE has taken several initiatives to launch ETF products in India and abroad. From here on we expect Interests and Inflows in India to grow manifolds. Soon we expect ETF sector too have Rs 1 lakh cr AUM”.
Ramakrishna said that stock exchanges will become "multi-asset class businesses as they begin to offer more broad-based indices... The benefit to ETFs is cost rationalisation and this has been consistently coming down. In India, this is less than half a percent, which is higher than the global average. But cost is a function of assets under management."
Ramakrishna said the NSE is working to introduce quality, value, thematic indices to encourage more ETFs and smart beta investing. "Increasing the liquidity of the ETF market and developing mass retail products are necessary going forward," she said.
During the conference, NSE facilitated 16 companies who have been part of the Nifty index since inception. Nifty’s success is truly a success of these companies. These companies are ACC, Ambuja Cements, Bajaj Auto, Grasim Industries, HDFC, HDFC Bank, Hindalco, HUL, ICICI Bank, ITC, L&T, RIL, SBI, Tata Motors, Tata Power and Tata Steel. Beside these companies fund managers, CFO’s and other industry experts participated. (KNN Bureau)
NSE today organized first of its kind 'India ETF Conference 2015' with an objective to bring in the different stake holders and to hear some of the International ETF experts. The conference expected to take Indian ETF market to the next level.
An ETF is like a mutual fund which issues units and closely tracks the price of an underlying security (like stock or a commodity), but can be traded on an exchange platform. India mostly has equity, gold and gilt ETFs, but globally, the ETF industry offers products on other commodities and fixed income securities.
“NIFTY ETFs is one of the oldest and the most popular ETF in India. NSE has 97% market share in AUM of equity based ETF. There are 11 Equity ETFs Nifty 50 in India and 6 ETFs on Nifty 50 are listed abroad in global markets,” according to an official release.
While congratulating National Stock Exchange of India on this momentous occasion, U K Sinha, Chairman, Sebi said that “This is a very opportune time to start such discussion. An ETF is almost like a mutual fund with a secondary market. The markets have grown 12 times in last 12 years in India. A stage has come when along with Employee Provident Funds others funds can look at ETF too. The big plus for ETF is the cost of trading”.
Chitra Ramkrishna, MD & CEO, NSE said that “NSE has taken several initiatives to launch ETF products in India and abroad. From here on we expect Interests and Inflows in India to grow manifolds. Soon we expect ETF sector too have Rs 1 lakh cr AUM”.
Ramakrishna said that stock exchanges will become "multi-asset class businesses as they begin to offer more broad-based indices... The benefit to ETFs is cost rationalisation and this has been consistently coming down. In India, this is less than half a percent, which is higher than the global average. But cost is a function of assets under management."
Ramakrishna said the NSE is working to introduce quality, value, thematic indices to encourage more ETFs and smart beta investing. "Increasing the liquidity of the ETF market and developing mass retail products are necessary going forward," she said.
During the conference, NSE facilitated 16 companies who have been part of the Nifty index since inception. Nifty’s success is truly a success of these companies. These companies are ACC, Ambuja Cements, Bajaj Auto, Grasim Industries, HDFC, HDFC Bank, Hindalco, HUL, ICICI Bank, ITC, L&T, RIL, SBI, Tata Motors, Tata Power and Tata Steel. Beside these companies fund managers, CFO’s and other industry experts participated. (KNN Bureau)
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