Finance Ministry Invites EoI for Advisor to Set Up Financial Sector ETF
The union ministry of finance has invited expression of interest (EoI) for appointing an advisor to help it launch exchange traded fund (ETF) for financial sector. The EFT would comprise shares of listed state-run entities like banks (PSBs), insurance companies and financial institutions.
In an advertisement, the ministry says, "The government is considering for creation and launch of financial sector ETF comprising shares of PSBs, PSICs and PSFIs. Proposals are invited by 3.30pm on 26 July 2019 from internationally reputed SEBI or RBI registered merchant or investment bankers, consulting firms, financial institutions and asset management act as advisor to assist and advise the government in the process..."
Earlier the government had launched central public sector enterprises (CPSE) ETF and Bharat-22 ETF. So far the government has raised around Rs38000 crore in five tranches from the CPSE ETF and Rs32900 crore from the Bharat-22 ETF. 
While there are 11 state-run companies in CPSE ETF, there are 16 public sector companies in Bharat-22 ETF. Both these funds are listed on BSE and National Stock Exchange (NSE).
  • User


    Aditya G

    7 months ago


    Will Gold Prices Continue to Rise?
    The price of gold has crossed the $1400 mark which is significant as it has taken place after six years. The last time the price of gold was past this mark was 29 August 2013 after which it was a gradual descent. For 2016, 2017 and 2018 the price has averaged $1203, $1257 and $1269, respectively. However in 2019 there has been an upward movement with the average daily price now being just over $1300, says a research report.
    According to the note from CARE Ratings, the rally in gold price now appears to be in progress as large volumes of currency across the world is being channelled to the exchange-traded funds. This has been furthered by a more volatile political situation where investors are rushing to gold as a safe harbour, it added.
    "Gold price will be largely driven by perceptions which in turn affect demand for the metal. The August Gold futures contract was at $1410 on 26 June 2019. The December contract was at $1420 while the June 2020 was at $1439. As the present pressures do not seem to be ebbing, the market is not ruling out a further upward movement in the range of $1450 in the next few months which can be the next testing point," the ratings agency says.
    During 2018, gold price had tended to also decline which was assumed to be the new normal for the metal. In fact, the price had breached the psychological mark of $1,200 per ounce mark in August. This was attributed to the growing strength of the dollar as the two variables are inversely related. 
    According to CARE Ratings, a stronger dollar means that the price of gold in other currencies becomes dearer thus impacting demand. However, it says, things have changed of late with the price crossing the $1400 mark and promises to head upwards given the underlying conditions.
    The price of gold had actually declined post the elections in 2016 as the US President had indicated that there would be expansionary policies that would in turn lead to inflation which would necessitate higher interest rates. Gold in this situation becomes less attractive as the dollar would also tend to strengthen. 
    Gold gains in phases of very low interest rates and conversely loses when rate move up, CARE Ratings says, adding, the currency markets hence plays its role as a stronger dollar makes it more expensive to buy gold in other currencies and lowers demand. Last geo-political instability is also responsible for gold price movements as any level of uncertainty makes gold more alluring as a safe investment.
    According to the ratings agency, escalation in the US-China trade war, political and economic tension in the Middle East and uncertainty of the course of Brexit are factors responsible for the rally in gold prices. 
    "The G-20 summit this weekend would be of interest as the US and China would be having talks to possibly sort out the trade issues which have been instrumental in the eruption of the trade war between these two nations.
    The near six year high of $1,402 witnessed on 24th June was supported by the dovish tone of the major central banks including Federal Reserve and European Central Bank (ECB). The indication that the US Fed would be lowering rates this year adds to the sentiment that the dollar is expected to weaken which in turn means an upside impetus for gold. The 10-year treasury is already at less than 2%. Investors are taking long positions on the exchanges and there is also a rise in physical demand for the metal," CARE Ratings concluded.
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    7 months ago

    Most of the gold jewelry sold in Indian stores are not of 22 carats though stated so. No shops have Gold purity measuring machines. Media is blind to the malpractices of jewelry shops. Regulators need to address these.


    Lakshminarayana K R

    In Reply to AAR 4 weeks ago

    Thanishq has it

    BSE gets SEBI nod to launch futures contract in gold, silver
    Security market regulator Securities and Exchange Board of India (SEBI) has allowed stock exchange major BSE to launch "delivery-based futures contract in dold (1 kg) and silver (30 kg)".
    According to the BSE, the trading of these contracts will be launched from October 1.
    "Contract start day will be 6th day of contract launch month and last trading day will be 5th day of contract expiry month," the BSE said in a statement on Wednesday.
    "The commodity trading session will be from Monday to Friday 10 a.m to 11.30 or 11.55 p.m. Delivery centre of gold and silver futures contract will be exchange designated vaults at Ahmedabad initially and then expanding it pan India in the second phase."
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.


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