Skip to main content

FinMin extends due date for debt ETF bids from advisers till July 2

By
FinMin extends due date for debt ETF bids from advisers till July 2
The DIPAM had earlier on April 18 issued the RFP for engagement of an adviser for creation and launch of debt ETF asking bidders to submit their bids by May 16The Finance Ministry has extended the deadline for merchant bankers to bid for creation and launch of a debt Exchange Traded Fund (ETF) for PSUs and PSBs till July 2.
In the revised request for proposal (RFP) issued on Monday , the Department of Investment and Public Asset Management (DIPAM) has tweaked the eligibility criteria for bidders, clarifying that they can also bid in consortium.Accordingly, market regulator Sebi or banking regulator RBI registered "reputed merchant bankers/investment bankers/ consulting firms/financial institutions/asset management companies, either singly or as a consortium," can bid for creation of the ETF till July 2.
In the revised request for proposal (RFP) issued on Monday , the Department of Investment and Public Asset Management (DIPAM) has tweaked the eligibility criteria for bidders, clarifying that they can also bid in consortium.Accordingly, market regulator Sebi or banking regulator RBI registered "reputed merchant bankers/investment bankers/ consulting firms/financial institutions/asset management companies, either singly or as a consortium," can bid for creation of the ETF.
"The bidders should have been involved in advisory or transaction capacity or have launched an ETF/debt ETF/ debt mutual fund/ index linked fund/corporate bond issuances during the period April 1, 2015, to March 31, 2018, aggregating to the total value of Rs 50 billion or more with minimum size of Rs 5 billion in any single issuance," the DIPAM said while issuing the revised RFP.
Govt invites bids from advisors for creation of debt ETF for PSUs and banks
The DIPAM had earlier on April 18 issued the RFP for engagement of an adviser for creation and launch of debt ETF asking bidders to submit their bids by May 16. Consequently, the pre-bid meeting was held on April 27.The DIPAM today came out with the revised RFP, inviting merchant bankers who are interested to help the government to create and launch the debt ETF.
"The advisor will also analyse, assist and advise on the possible monetisation of the debt of the select CPSEs through market-oriented instruments," the RFP said, while inviting bids by July 2, 2018, from reputed merchant bankers/investment bankers/consulting firms/financial institutions/asset management companies.
They can bid "either singly or as a consortium; to act as advisor/consultant to assist and advise the government in the process," the RFP said.The debt ETF, for the CPSEs/PSBs/PSUs would help them meet their capital expenditure and business needs by leveraging their aggregate strength. EPFO members to get option to hike investments in ETFs by this fisca."This will bring enhanced liquidity, enhanced investors base and transparency and smoothening of borrowing plans of the participating CPSEs/PSBs/PSUs. This will benefit both the investors and the issuers," the RFP said.
Finance Minister Arun Jaitley had in the Union Budget 2018-19 floated the idea of a debt ETF saying that DIPAM will come up with more ETF offers, including debt ETF.As per official data, 15 central public sector enterprises (CPSEs) have together raised about Rs 3 trillion  through bonds in the last three years. Of these, 12 companies are 'AAA' rated, which is the top investment grade.
The Business Standard, New Delhi, 12th June 2018

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more