France has recently made it possible for active ETFs to list in the country for the first time. The French government has published a decree on Feb. 27, 2024, removing the conditions under its monetary and finance code which had previously prevented their listing. Any listings will have to wait for the Autorité des Marchés Financiers (AMF) to publish an update to its regulations, expected imminently.

The decree will enable active ETF issuers to list their products on the Euronext Paris, a rapidly growing area of the market. These products, which are experiencing strong development in the U.S., could potentially expand the distribution channels of actively managed funds in Europe.

The code—first written in 2001—outlines what asset managers can list on the French stock exchange. It was updated a few years later to integrate smart beta ETFs, adding the notion “based on an index or an algorithm.” The new updates will remove “index-based” from the code.

Olivier Paquier, global head of ETF sales at AXA Investment Managers, said: "We can identify two business advantages here. Firstly, investors tend to favor proximity and local stock exchange to buy, sell and process instruments." “Secondly, international investors are watching closely European stock exchanges and are supportive of the fact that ETF providers are multi-listed.”

The active ETF market in the U.S. grew by 30% last year and is worth roughly $500 billion. The European market has also experienced strong growth with $32.9 billion in assets under management (AUM) at the end of 2023, according to data from ETFbook. JP Morgan Asset Management is the dominant force on the continent, generating a 42.5% market share since entering in 2018 with $14 billion in active ETF AUM. There have been several new active ETF entrants in recent years, including AXA Investment Managers, abrdn, BNP Paribas Asset Management and Investlinx.

Gold ETF Listings in India

Zerodha Mutual Fund has launched its Gold ETF, known as GOLDCASE, on the NSE and BSE. The open-ended scheme is designed to mirror domestic gold prices and is aimed at providing investors with a seamless and cost-effective route to incorporate gold exposure into their portfolios. The scheme allows for easy buying or selling of units on all trading days, addressing the increasing demand for gold-related investments. The fund invests in physical gold with a purity level of 99.5% and above, securely stored in a vault, addressing any security concerns and providing investors with peace of mind. The Zerodha Gold ETF offers investors a convenient means to diversify their portfolios and potentially reduce overall volatility. The fund house reiterated the inherent market risks associated with mutual fund investments and urged investors to carefully read all scheme-related documents before making any investment decisions.

Exicom Tele Systems IPO

Exicom Tele Systems, a power and EV battery solutions provider, made a stellar debut on the stock exchanges on Tuesday. The stock was listed at a premium of over 86% to the issue price on the NSE and BSE. The company raised a total of ₹429 crore from public investors through its initial public offering last month. The public issue was open for subscription from February 26 to 29. The issue was priced at ₹135 to ₹142 per equity share. The company has proposed to utilise the proceeds of ₹329 crore from the fresh issue for setting up production lines, R&D activities, repayment of loans and other purposes. The public offer received strong demand from investors as it was subscribed around 129 times on the final day. The company received applications for 2,36,07,64,300 equity shares against 1,82,23,540 shares on offer. The qualified institutional buyers’ category was subscribed by more than 121 times. The non-institutional investors’ category was subscribed 153 times while the retail segment was subscribed 119.59 times.

Exicom Tele-Systems, which was founded in 1994, provides power management solutions. The company has two business verticals – power solutions business and Electrical Vehicle charger solutions segment. Under the power solutions segment, the company produces DC Power Systems and Lithium-ion based storage solutions. These solutions are installed at enterprises and telecommunications sites in India and abroad. Under the EV solutions segment the company offers smart charging systems for residential, business and public charging use.