e    rit    ar et in ndia    14.29
     of Rs. 3,000 crore through the fund while it got       ETF with diversified CPSE stocks and other
     over-subscribed to the tune of Rs. 4,300 crores.       Government holdings in the fiscal 2017-18.
          This scheme is conceived by the Government
     of India as a means to disinvest a part of its holding    PenSion Sector reformS
     in Public Sector Units (PSUs) and would be
                                                            Pension has been the integral part of government
     managed by Goldman Sachs Asset Management
                                                            jobs in India. Pension serves two important socio-
     (India) Pvt. Ltd., a mutual fund company that
                                                            economic objectives—
     specialises in managing exchange traded funds.
                                                                 (i) It facilitates the flow of long-term savings
          ETF is a security that tracks an index, a
                                                                     for development, i.e., nation-building;
     commodity or a basket of assets such as an index
     fund, but trades like a stock on an exchange – the
     CPSE ETF tracks the CPSE Index (of 10 PSUs                 (ii) Also helps establish a credible and
     included in the ETF). CPSE Index has been                       sustainable social security system in the
     constructed by including companies that meet the                country.
     following criteria:                                         The New Pension System (NPS) was introduced
          (i) Owned 55 per cent or more by the GoI          for the new recruits who join government service
               and listed on the NSE;                       on or after 1 January, 2004. Although the NPS
                                                            is perhaps one of the cheapest financial products
         (ii) Large PSUs (those having more than
                                                            available in the country, in order to make it
               Rs.1,000 crores as average free float
                                                            affordable for the economically disadvantaged,
               market capitalisation for six months
                                                            the government in September 2010 introduced
               period ending June 2013); and
                                                            a lower cost version, known as Swavalamban
        (iii) With a consistent dividend payment            Scheme, which enables groups of people to
               record (at least 4 per cent for 7 years      join the NPS at a substantially reduced cost. As
               immediately prior to or 7 out of 8/9 years   per existing scheme under NPS, Swavalamban
               immediately prior to June 2013).             could be availed either in ‘unorganised sector’ or
          The ten blue-chip PSUs which meet the above       in ‘NPS Lite’. NPS Lite is a model specifically
     criteria and their weightages are: ONGC (26.72         designed to bring NPS within easy reach of the
     per cent); GAIL (India) (18.48 per cent); Coal         economically disadvantaged sections of the society
     India (17.75 per cent); REC (7.16 per cent); Oil       —it is extremely affordable and viable due to its
     India (7.04 per cent); IOC (6.82 per cent); Power      optimised functionalities, available at reduced
     Finance Corp. (6.49 per cent); Container Corp.         charges. Under the Swavalamban scheme, the
     (6.40 per cent); Bharat Electronics (2 per cent)       government provides subsidy to each NPS
     and Engineers India Ltd. (1.13 per cent).              account holder and the scheme has been extended
          CPSE ETF will invest the corpus in the            until 2016–17.
     above-given companies as per the given weightage.           A customised version of the core NPS model,
     Hence, subject to the tracking error and expenses,     known as the NPS Corporate Sector Model was
     CPSE ETF’s returns will closely correspond to the      introduced from December 2011 to enable
     CPSE Index returns.                                    ‘organised-sector’ entities to move their existing
          Meanwhile, the Government has announced           and prospective employees to the NPS under its
     (Union Budget 2017-18 ) to launch a new                Corporate Model. All pubic sector banks have