InvestorQ : What are the key features of the fourth tranche of CPSE ETF?
Ankit Patil made post

What are the key features of the fourth tranche of CPSE ETF?

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seema Upadhyaya answered.
3 years ago
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CPSE ETF or Central Public Sector Enterprises (CPSE) exchange-traded funds (ETFs) will open for subscription this week in what is its fourth tranche of subscription.

The features of the fourth tranche of CPSE ETF are:

- It will open for subscription for retail investors like you and I from November 28, 2018 and will close on November 30, 2018

- Maximum cap per stock is now lowered from 25% to 20%

- The government is hoping to garner Rs.8000 crore from this divestment and can additionally raise Rs.4000-6000 crore via the green-shoe option (overallotment to underwriters)

- Minimum subscription for the CPSE ETF is Rs.5000 and in multiples of Re 1 there-of

- All investors will get 4.5% upfront discount on the issue price; this is higher than the discount given in the previous tranche (3.5%)

- There is no entry and exit load

- This ETF will be listed on stock exchanges and the listing date will be announced as soon as the subscription is over

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