Financial Daily from THE HINDU group of publications
Friday, Jun 02, 2006
Financial Daily from THE HINDU group of publications Friday, Jun 02, 2006 |
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Markets
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Stocks Our Bureau
Mumbai , June 1 Barclays Global Investors (BGI) and Singapore Exchange Ltd (SGX) on Thursday announced that `iShares MSCI India' would be listed on SGX on June 15, making it the first Exchange Traded Fund (ETF) outside India to offer investors an ideal route for accessing the Indian stock market. The iShares MSCI India will track the MSCI India Index, which is designed to provide a broad-based coverage of at least 85 per cent of the free float-adjusted market capitalisation of each industry group in the Indian market, a press release from BGI said here. iShares Funds are index tracking funds managed by BGI that are bought and sold like common stocks on stock exchanges. The manager of iShares MSCI India is BGI Southeast Asia Ltd, a subsidiary of BGI in Singapore. "The iShares MSCI India is an innovative product that offers investors an easy and affordable way to gain exposure to the fast growing Indian market," Mr Joseph Ho, Head of iShares for BGI in Asia ex-Japan, said. "The minimum investment is expected to cost $428 at launch. This makes it affordable for small investors to own a piece of one of the most exciting emerging markets in the world. A listing in Singapore, a well-established financial centre, offers an excellent trading venue for investors outside of Singapore to access this fund," the release said. Mr Ho said it was difficult to predict the amount ETF would collect, as it is an open-ended fund. "Our `A' shares ETF had raised $ 800 million in 18 months trading in Hong Kong with QFII quota restraint," he said, responding to a query on the likely level of interest in the India ETF. Mr Mark Talbot, CEO of BGI's business in Asia ex-Japan: "We are very excited about the launch of iShares MSCI India on SGX and we look forward to having more ETFs in this market." To facilitate efficient trading of iShares MSCI India and provide liquidity to the secondary market, the company would be closely working with Citigroup Global Markets, who would be the fund's market maker, he said.
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