Exchange operator and system provider Nasdaq OMX Group and Indian asset manager the Motilal Oswal Asset Management Company, a subsidiary of Motilal Oswal Financial Services, plan to set up an exchange-traded fund (ETF) in India, based on US equities.
The two companies have filed a draft scheme information document with the Securities and Exchange Board of India, the financial regulator, for the Motilal Oswal MOSt Shares Nasdaq-100 ETF, an open-ended index ETF, which seeks to track the Nasdaq-100 stock Index. The proposed ETF will be India's first US equity-based ETF, once approved by Indian regulators.
The Nasdaq-100 Index is made up of the 100 largest non-financial companies listed on the Nasdaq Stock Market. The new ETF is intended to provide Indian investors with global, diversified rupee-denominated access to high growth Nasdaq-100 companies such as Google, Microsoft and Apple during Indian market hours.
The ETF will be traded like a share on Indian stock exchanges, and will not impact overseas investment limits. John Jacobs, executive vice president at Nasdaq OMX, said that the MOSt Shares Nasdaq-100 would provide new investment opportunities in non-financial US companies to investors in India.
“We plan to launch more such specialised first of their kind products which help investors create a well-diversified portfolio from global assets,” added Nitin Rakesh, managing director and CEO of Motilal Oswal.