Mauritius Commercial Bank is ready to introduce the world’s first exchange traded fund to provide global investors access to the Indian government bond market. The scheme, called MCB India Sovereign Bond ETF, will be listed on the stock exchange of Mauritius. An investor can subscribe to the ETF at $10/share through MCB stockbrokers. The minimum initial investment is $5,000, and the offer would be closed for subscription on 27 May. After the initial period offer, one can buy ETF shares on the Stock Exchange of Mauritius at market prices. The scheme aims to provide investors with regular short-term returns through the payment of half-yearly dividends and longer-term capital appreciation following the ZyFin India Sovereign Bond Liquid Index which tracks the performance of the most liquid and fixed rate central government bonds in India, the company said.
