Singapore to list ETF based on Indian stocks
SGX will list an exchange-traded fund based on 64 top Indian stocks including Reliance Industries and Tata Group.india Updated: Jun 02, 2006 12:08 IST
The Singapore Exchange (SGX) will list an exchange-traded fund (ETF) based on 64 top Indian stocks including Reliance Industries and Tata Group, Channel NewsAsia reported Friday.
The new fund, iShares MSCI India, is designed and managed by Barclays Global Investors and will be listed on June 15.
It tracks mainly blue chips, covering at least 85 percent of the Indian market.
The minimum board lot for an investment is 100 shares, which will cost about 730 Singapore dollars ($462).
"There is a lot of demand in India. It's one of the two most exciting markets right now. Together with China, India is the growth engine for this new century," said Joseph Ho, head of iShares Asia for Barclays Global Investors.
"The issue has always been - how do you help investors to get access because India has these restrictions about foreign investments into the country. They only allow certain groups of investors, the very large institutional investors."
There are already several US-based, exchange-traded funds on SGX, but the local exchange is aiming to promote more Asian products, with two to three more ETFs based on Asian equities and possibly a non-equities ETF based on fixed-income products or commodities.