BHARAT 22 ETF FFO 2 [October 04, 2019] - Detail Review

BHARAT 22 ETF Detail

• What is BHARAT 22 ETF?

  Government of India (GOI), as part of its disinvestment programme, approved the setting up of Exchange Traded Fund (ETF) comprising shares of listed Central Public Sector Enterprises (CPSE), some of the strategic holding of Specified Undertaking of Unit Trust of India (SUUTI) and other corporate entities.
  ICICI Prudential Asset Management Company Limited (ICICI Prudential AMC/the AMC) was appointed to create, launch and manage the ETF. On August 4, 2017, the Government announced a new ETF by the name 'BHARAT 22 ETF' and also, announced the index for BHARAT 22 ETF. BHARAT 22 ETF will invest in the equity securities of the underlying constituent companies of 'S&P BSE Bharat 22 Index' in similar composition and weightages as they appear in the said Index.

• Where will BHARAT 22 ETF invest in?

  BHARAT 22 ETF shall invest in equity securities of the underlying constituent companies of 'S&P BSE Bharat 22 Index', which is also the Benchmark Index of the BHARAT 22 ETF.

• What are the broad highlights of S&P BSE Bharat 22 Index?

  There are 22 stocks under the S&P BSE Bharat 22 Index which comprises shares of Central Public Sector Enterprises (CPSE), Public Sector Banks and some of the strategic holding of Specified Undertaking of Unit Trust of India (SUUTI). S&P BSE Bharat 22 Index is well diversified index across six sectors. The stock level capping is at 15% and sector capping is at 20% applied annually at rebalancing.

  To know more about the index constituents and for more details, please visit:

  https://www.bseindia.com/sensex/code/100/

• Will there be separate Application form for Bharat 22 ETF Additional Offer?

  Yes, there will be separate Application form for Bharat 22 ETF Additional Offer which will be available on the website of AMC.

• Is there any discount to investors?

  A 3% Discount for all investor categories on Government disinvestment shares. The discount offered by GOI may not be a discount to the closing market price of the underlying shares of S&P Bharat 22 Index on the Additional Offering Period/ Allotment Date.

  Discount is calculated on Additional Offering Period Reference Market Price which is determined on the basis of full-day volume-weighted average price on the BSE during the additional offering period for each of the index constituents of the S&P BSE BHARAT 22 Index. Discount will be on shares to be disinvested by the Government of India. In the event an index constituent is purchased from open market to meet the Maximum Amount to be raised during an additional offering period, no discount will be offered on such purchase of index constituent from the open market. For more details refer notice available on website

• What is the Total Expense Ratio of BHARAT 22 ETF?

  Currently, the expense ratio of BHARAT 22 ETF is up to 0.0095% p.a. of daily net assets of the scheme.

  Please refer to Scheme Information Document (SID) for more details.

• Do we have Direct or Regular Plan option in BHARAT 22 ETF?

  Currently, there are no separate Plans/options under BHARAT 22 ETF.

• Will the Scheme declare dividend or it will be growth scheme?

  The Scheme can declare dividend subject to availability of distributable surplus and approval from the Trustees of the Scheme.

• What will the tax treatment be in case of short term capital gains (STCG) and long term capital gains (LTCG)?

  Taxation for this ETF will be like that of equity shares or equity mutual funds.

• How can I make application/subscription in BHARAT 22 ETF during the Additional Offering Period?

  Applicants may submit the physical application at designated Investor Service Centres of ICICI Prudential Asset Management Company Limited or Computer Age Management Services Pvt. Ltd. (CAMS).

  Additionally, the below mentioned online modes will be available:

  • ICICI Prudential AMC or ICICI Prudential Mutual Fund website
  • IPRUTOUCH App
  • NSE MFSS
  • BIMF (BSE IBBS PLATFORM)
  • NMF II platform of NSE
  • e-ETF under web based NSE e-IPO platform
  • MF Utility
  • CAMSONLINE

• Is there any lock-in period under BHARAT 22 ETF Additional Offering Period?

  There is no lock-in period for Investors.

• Who can apply and how much one can apply in BHARAT 22 ETF during the Additional Offering Period?

  Investors who hold a demat account can apply for units of the ETF during the Additional Offer period. The different categories of investors with respective application amounts under each category is provided in the below table:

  Type of Investors	Description	Investment Amount
  Retail Individual Investors (RII))	Natural persons including NRI, sole proprietorship concern and HUF represented by Karta	Rs.5,000 and in multiples of Rs 1 thereafter up to Rs 2,00,000 per investor.
  Retirement Funds (RF)	Any private or public trust, or any other entity, set up with the objective of making investments for the benefit of retirement or social security benefits for employees or workmen in the private or public sector and includes pension funds, gratuity funds, provident funds, annuity funds, deposit-linked insurance funds or superannuation funds, whether regulated by any authority or not.	Rs 2,00,001 and in multiples of Re.1 thereafter.
  Other than Retail Individual Investors and Retirement Funds	All investors who are neither Retail Individual Investors nor Retirement Funds.	Rs 2,00,001 and in multiples of Re.1 thereafter.

• Can I submit multiple applications?

  An Investor ideally should submit one application. If multiple applications are submitted by an investor/ investor(s) (with different holding pattern) the applications will be clubbed on first/ sole holder PAN for determining investor category (i.e. Retail Individual). E.g. an Individual Investor A, submits two applications of Rs.1,50,000 each with two different demat accounts with holding pattern as A,B and A,C,B. The total application under Investor A's PAN will be considered as Rs 3,00,000, thus he will be categorized as 'Other than Retail Individual Investor and Retirement Funds' will not receive the allotment under Retail Individual Investor category.

• Do I need to pay any transaction charges to the distributor through whom I am applying in the Additional Offering Period?

  In case the Distributor has „opted in„ to receive Transaction Charges, Rs 150 (new investor in mutual fund) & Rs 100 (existing investor) will be deducted if the Subscription amount is Rs.10,000 & above.

  Further note that transaction charges will be applicable for transactions routed from Physical, ICICI Prudential MF Online portal, Channel Partners and stock exchange platforms through ARN-Holders (Mutual fund distributors) if the distributor is in „Opt in' list and Transaction charges will not be applicable for transactions routed from stock exchange platforms routed through stock brokers even if the broker is in „Opt in' list.

• Can I register nominee for this investment?

  Mode of holding for BHARAT 22 ETF is compulsorily dematerialized. The allotment will happen in demat mode. Hence, the nomination details registered in your demat account will be applicable to this investment.

• Will there be any Folio No. for future reference?

  Since the ETF units are compulsorily held in Demat mode and ongoing transactions happen through Secondary market, there will be no MF Folio number. For all future queries on allotment, applicants

  need to refer the Demat account number and 1^st/ Sole Holder's PAN which were used in the Additional Offering Period.

• I don't have a demat account, but I want to apply for this ETF. Is it mandatory to have a demat account to apply for this Additional Offering Period? Can I apply for it like I apply for any other mutual fund?

  Demat account is mandatory to apply for this ETF.

• Is it mandatory to apply only through cheque and not ASBA?

  ASBA facility is not available. You can submit Cheques /Demand drafts, Transfer requests/ RTGS and NEFT along with the application form or invest online through your broker's trading platform to apply for this ETF.