Initiator : MCB Capital Markets introduces World’s first Exchange Traded Fund focused on India’s sovereign bonds.
Purpose : To provide global investors access to the Indian government securities.
MCB India Sovereign Bond ETF, a global adaptation scheme, will invest in sovereign bonds with a typical maturity between 8 and 13 years.
- The initial offer period of the fund will close on May 27 . The ETF will start trading on stock exchange of Mauritius on June 6.
Effective feature:
- Investment into the Indian sovereign bond market makes easier
- Investors with regular short-term returns
- The payment of half yearly dividends in US dollars
Difficulties in olden structure:
- Accessing of foreign investors with minimum investment thresholds
- Ceilings on foreign holdings
- Other regulatory processes
- Potential for capital appreciation
ETF Chairman Gilbert Gnany said that the partnership are made with ZyFin by introducing the First ETF by the MCB Capital Market. He also noted the dwelling place is in India that are listed in the Mauritius.
Capital investment : Â 50 per cent of investments in India go through Mauritius.
Advantages:
- To stabilise the mutual relationship between India and Mauritius.
- It is easy access to the Indian sovereign debt market
- It is one of the largest and most attractive bond markets in the world
Sponsorship and promotions  : MCB Capital Markets, investment banking arm of Mauritius’ MCB Group.
Investor advisor: Zyfin