Skip to main content

SEBI may allow metal ETFs to attract retail investors

By
SEBI may allow metal ETFs to attract retail investors
Market regulator Sebi is considering allowing exchange-traded funds (ETF) based on metals like silver and platinum to encourage participation of retail and institutional investors in these market instruments, senior officials said.
In global markets ETFs are based on equities, commodities and metals but in India these funds are based on equity and gold only. The move is expected to help investors participate in a market upside with lower risk and volatility, and spread their risk better.
Senior officials said that the Securities and Exchange Board of India (Sebi) is planning to permit ETFs based on metals such as silver and platinum. "In a growing economy like India which is likely to become commodity intensive with policy push on infrastructure creation and initiatives such as 'Make in India', the launch of metal ETFs would provide access to retail and institutional investors to track economic growth of commodity intensive economies," MCX Research Head V Shunmugam told PTI.
Further, it would make the 'price discovery' mechanism of metal markets more robust, he added. Quantum Mutual Fund CEO Jimmy Patel said that the fund house will launch silver ETFs as and when Sebi will come out with guidelines in this regard.
"The great advantage of having metals ETFs will be to invest in certain sectors without loading up too much on equities," he added. An exchange traded fund, an open-ended mutual fund scheme, tracks its underlying index and invests in same stocks as constituted in the index.
Further, Finance Minister Arun Jaitley in his budget speech for 2018-19, said that more ETFs will be launched as well as a debt ETF too.

Sebi had recently floated a consultation paper on the modalities of permitting mutual funds and portfolio managers in commodity markets, and the guidelines in this regard may soon get issued by the markets regulator.
"Once mutual funds are allowed in commodity markets, it is expected that there may be ETFs on several commodities, particularly in metal and energy space," Shunmugam added.
The Economics Times, NewDelhi, 05th Feburary 2018

Comments

Post a Comment

Popular posts from this blog

Data storage norm splits digital payments industry

By
Data storage norm splits digital payments industry  India’s nascent digital payment industry could be thrown into disarray due to the demand by the Reserve Bank of India (RBI) that all user data be stored within the country, fears an industry grouping, which has termed the decision as “heavy-handed”, even as others, including the country’s largest digital payment provider Paytm, have hailed the move.  In a bid to narrow the growing schism, the industry is planning to send a formal representation to the regulator highlighting its concerns, a top official told ET.  “We are trying to build a consensus on the issue," said the person adding that the representation to the central bank will be ready this week.  RBI on April 6, mandated all payment companies—global and local—to set up data storage facilities within India by October. The stringent six-month deadline has attracted the ire of several sections of the industry that fear it will lead to a disruption of wel...
18 comments
Read more

Offer’s for all of you

By
Great Bumper Dhamaka Offer’s for all of you... It's Time to see your Business Online, WebeCreator Offer Website Designing with domain & Email @ nominal charges. For a year For More information visit us http://goo.gl/KlpppF call on 9890151261/9773197533  drop a mail to sales@webecreator.com
Post a Comment
Read more

Sebi to finalise options in commodities today

By
The Commodity Derivatives Advisory Committee of the Securities and Exchange Board of India ( Sebi) will meet on Friday with senior officials of the latter, to give a final shape to the rules on options trading in commodity futures, beside revising the warehousing norms to ensure good delivery on settlement. The decision taken, after discussing with the advisory committee, will be placed before the regulator’s board, to finalise the regulations. According to knowledgeable sources, three commodities in each segment, agricultural and non- agricultural, have been proposed for introducing options. It appears commodities from the soya and guar segments are preferred in the former. From the non- agri segment, it is likely that gold, silver and crude oil will be finalised. All these These have better liquidity and both the National Commodity and Derivatives Exchange and the Multi Commodity Exchange, respectively, will be able to introduce the options. In the equity segments, options ar...
17 comments
Read more