India's first debt ETF is here! Retail investors can now bet on bonds

The Modi government on Wednesday cleared the launch of India’s first bond ETF in a bid to deepen the bond market and bring in retail participation in this space.

The Union Cabinet cleared the Bharat Bond Exchange Traded Fund, which will be managed by Edelweiss Asset Management. The product was unveiled after two years of deliberations between the Government of India and various other stakeholders.

“It will be the first corporate bond ETF, which will provide additional money for PSUs as well as other government organisations,” Finance Minister Nirmala Sitharaman said on Wednesday announcing the product.

Bharat Bond ETF will have a fixed maturity period, like close-ended mutual funds and the units will be listed on stock exchanges.