Road shows for marketing of the new fund offer for the ETF will start on Friday.
The government has appointed Goldman Sachs as the fund manager and ICICI Securities as advisor for the so-called Central Public Sector Enterprises ETF.
The CPSE ETF will initially be a basket of 10 government-owned stocks. Gas explorer ONGC will have the highest weight of 27.6 per cent, followed by another energy company GAIL (India).
Engineers India will have the least weight. Nearly 60 per cent of the index will be comprised of energy companies.
The ETF will track the performance of the CPSE Index, which has been developed by India Index Services & Products, an arm of the National Stock Exchange.
The CPSE Index, with a base date of January 2009, will provide real time rates from March 18.
According to data provided by the NSE, the index has delivered 3.86 per cent returns so far this year and has a one-year return of minus six per cent.
The benchmark Sensex is up 2.85 per cent so far in 2014 and has risen nearly 12.5
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