New Delhi: The Union Cabinet on Wednesday approved India’s first corporate bond exchange-traded fund. Finance minister Nirmala Sitharaman announced the decision in a press meet after the cabinet meeting.

Here are 10 things to know about the bond.

1. The move is aimed at enhancing depth in the bond market and draw retail investors to the debt products.

2. Edelweiss Asset Management is launching it.

3. ETF will have a definite maturity period. Its units will be listed on the stock exchanges.

4. ETF will have two variants — one scheme maturing after three years and the other after 10 years.

5. The government has identified government-owned companies, from rating ‘AAA’ to ‘AA’ for the ETF, but the first tranche would be only for ‘AAA’-rated

6. Over a dozen of PSU, including National Highways Authority of India, Indian Railways Finance Corporation, Power Finance Corporation, National Thermal Power Corporation, Nabard, Exim Bank, Nuclear Power Corporation, REC, Power Grid, are likely to be part of the proposed ETF.

7. The proposal was initially floated by former finance minister Arun Jaitley during his 2018 Budget speech.

8. This will be the cheapest mutual fund in India

9. You will need a Demat account to trade.

10. Bharat Bond ETF will provide additional money for PSUs, other government organisations