Finance ministry calls bids for ETF advisors.

NEW DELHI: The finance ministry on Wednesday invited bids from advisors for setting up an exchanges traded fund (ETF) for selling stakes in state run companies, marking a rush to raise Rs 30,000 crore budgeted from disinvestment in the current year.

The department of disinvestment also sought applications for merchant bankers to manage its stake sale in petroleum exploring company Oil India.

The Cabinet Committee on Economic Affairs had on Friday approved stake sales in Hindsutan Copper, National Aluminium, Oil IndiaBSE -0.25 % and MMTC. The government has not managed to raise a penny from disinvestment in the current fiscal.

In a public notice, the department of disinvestment asked for proposals from internationally reputed merchant bankers, investment bankers, consulting firms and asset management companies that has launched equity ETF of Rs 1,000 crore or more between September 2009 and June 2012. "The Government of India intends to create and launch a CPSE (Central Public Sector Enterprise) ETF," it said.

After the appointment of advisor, the government will appoint an ETF provider, which will manage the fund on behalf of the government. The ETF will manage a pool of shares of the PSUs it wants to divest.

The government will sell 10% stake in OIL India through offer for sale of shares through the stock exchanges, DoD said in an advertisement. The last date for submitting expressions of interest (EoIs) by merchant bankers and selling brokers is October 4.

Source : economictimes.indiatimes.com