A Sensible Move
It makes perfect sense to include banking stocks in the Central Public Sector Enterprises ETF. The ETF functions like a mutual fund scheme, and through the Further Fund Offer (FFO) route, it is possible to raise capital quickly and cheaply via the internet-enabled iBBS platform. The FFO is open to different categories of investors, including anchor, retail and institutional. However, it remains to be seen if the government can also get the best deal for strategic divestment of, say, Hindustan Zinc, via CPSE ETF.