Bharat 22 ETF, the recently launched ICICI Prudential Mutual Fund AMC-managed exchanged traded fund, is looking into getting listed on global stock exchanges according to an ET Now report. As per the report, the government has tasked ICICI Prudential AMC with getting the ETF listed on various global indices. At present the US, Singapore, London and Hong Kong exchanges are being considered as the prime candidates for this listing. The Bharat 22 ETF is currently listed on Indian indices and since its launch in November, the ETF has garnered significant attention from domestic institutional and retail investors according to the ET report.
The Bharat 22 ETF is a unique blend of public sector, SUUTI and CPSE equities across diverse sectors featuring individual stock investment cap of 15% and sector wise cap of 20%. The ET Now report also added that being a passively managed fund, the Bharat 22 ETF features a lower expense ratio as compared to actively managed funds. As per earlier reports the Bharat 22 ETF was introduced in order to help the government meet its divestment target in a few select public sector and SUUTI companies. Hence, international listing would dilute the government’s stake in the Bharat 22 ETF companies further. The ET Now report also mentions that the government has announced that its stake dilution in these companies would cease subsequent to the proposed listing on international indices.