The department of disinvestment has moved a Cabinet note last week stipulating the broad contours of the ETF, said sources.
"It is proposed that all listed CPSEs, may, in principle, be approved for being considered for the ETF basket. However, the exact number of CPSEs and the names of CPSEs would be decided later on, closer to the launch, depending on the market conditions prevailing at that time," a source said.
ETFs were introduced in India in 2001. At present, there are 33 ETFs having assets under management (AUM) of close to Rs.11,500 crore and held by 6.2 lakh investors. Gold ETFs dominate the ETF market in the country.
Globally, ETFs have been growing at a rapid pace with an annual growth rate of over 34% in the last decade, with AUM of $1.5 trillion at present.