The National Stock Exchange achieved a new milestone by listing 150 Exchange Traded Funds on its platform.

The first ETF on NSE was listed in 2002 by Nippon India Mutual fund (erstwhile Benchmark Asset Management Company) on the Nifty 50 Index.

The ETF was first listed on NSE on January 8, 2002 and trading volume on day one was ₹1.30 crore on NSE.  

It took over 20 years for NSE to get 150th ETF listed on its platform.

In last one year, 41 ETFs were listed on NSE. The asset under management of ETFs has increased 7.7 times to ₹5.02 lakh crore by October-end against ₹65,124 crore logged in October 2017.

The daily average turnover in ETF has increased 10 times in 10 years to ₹471 crore so far in current financial year against ₹46 crore in FY14.

Recently, SEBI has asked AMCs to appoint at least two Market Makers, who are members of the stock exchanges, for ETFs to provide continuous liquidity on the stock exchange platform. More than 15 market makers are now engaged by AMCs for market making in various ETFs.

EPFO participation in ETFs

ETFs received a significant boost with participation of Employees Provident Fund Organisation in equity market through investments in ETFs and Government’s decision to divest stakes in public sector companies through ETFs.

In recent times, ETFs on variety of themes such as factor indices which includes low volatility, quality, momentum indices within equity asset class were launched by AMCs. This apart, silver ETFs under commodity ETFs and Fixed income ETFs which include themes like combination of State Development Loans and Government securities and corporate bonds were also launched.

Ashishkumar Chauhan, Managing Director, NSE said the market friendly policies implemented by Sebi have stimulated growth of ETF industry.

ETFs on different themes launched by Asset Management Companies has emerged as the preferred vehicle for EPFOs, investors and trading members, he added.