In any ETF there are single or multiple market makers who ensure there is ample liquidity in the market. I was trying to find out who the market makers are for
SBI ETF Nifty 50
SBI ETF Nifty next 50
I went through their fact sheet and all other documents and even searched the net but could not find who the market makers SBI has appointed to manage SBI ETF Nifty 50.
Is this not mandatory information that the customer should know. The reason for asking is I read in an old Mint Article that the market makers did not track the Index during March 2020 crisis because the market makers were facing liquidity issues.
This was followed by another article where they said that if the spread is too thin for the market maker, they will not actively participate in providing liquidity.
In my view, the investor should be made aware of who the AMC has appointed as market maker so that an investor is aware of the pedigree of the market maker.
I truly wish someone could explain on this.
(my guestimate is that for SBI ETF, the market maker would be their own brokerage company but need to be sure)