Motilal Oswal's Midcap ETF gets listed on NSE

Our Bureau Mumbai | Updated on February 04, 2011

Motilal Oswal Asset Management's Motilal Oswal MOSt Shares Midcap 100 ETF (MOSt Shares M100), which received Rs 125 crore in NFO collections; got listed on the NSE on Friday.

It opened at Rs 7.93 but closed weak at Rs 7.68 in line with the index fall and saw a heavy volume of 5.7 crore units, of which about 50 per cent was deliverable quantity.

The NSE CNX Nifty on Friday saw a drop of 2.37 per cent, down by 131 points, to 5395.75 from its previous close of 5526.75

The ETF had been open for subscription till from January 12 to 24. The subscription received around 13,900 applications from about 12,000 investors, said a statement from the company.

About 88 per cent of the applications were through the online medium, exchanges or online trading platforms. More than 80 per cent of the applications are from individual investors, said the statement. “Exchange traded funds are one of the most efficient, transparent and low-cost products in the market, yet they are under penetrated and an under represented segment, something the investors have not benefited from,” said Mr Nitin Rakesh – MD & CEO, Motilal Oswal Asset management Ltd.

The company has filed an offer document with SEBI to launch an ETF indexed to the NASDAQ 100.

MOSt Shares M100 is indexed to the CNX Midcap Index and is the only mid-cap exchange traded fund in the market, said the statement.

The average assets under management (AUM) under exchange traded funds (ETFs) in the industry is close to Rs 5,220 crore, as at end December, 2010, which is double the AUM as at end March 2010 (Rs 2,661 crore).

The total number of folios in the ETF segment has also increased by 71 per cent so far this fiscal, to 3,48,334 (end December 2010), up from 2,03,544 (March 31, 2010).

Published on February 04, 2011

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