Debt index ETF replication requires diversified, investment-grade indices and limits deviations to minimise tracking error. A Fund Management Entity may launch an ETF replicating a debt index of the IFSC, India, or a foreign jurisdiction. Replicating indices must generally ... Summary
Debt index ETF replication requires diversified, investment-grade indices and limits deviations to minimise tracking error.
A Fund Management Entity may launch an ETF replicating a debt index of the IFSC, India, or a foreign jurisdiction. Replicating indices must generally contain at least five issuers, limit each issuer's weight, and comprise investment-grade constituents, subject to an exception for Government securities. The ETF must replicate its underlying index to at least 90 per cent of total assets. Deviations caused by unavailable constituent issuances must minimise tracking error and conform to offer document disclosures.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.