What are the implications of Face Value split of ETFs?

Recently, most of the ETFs of Reliance Nippon Life Asset Management Limited (Niftybees, Bankbees, Goldbees, Psubnkbees, Netfnv20, Hngsngbees) have undergone Face Value Split.

How would the FV split in ETFs affect the overall markets?

For one, they allow smaller investors to invest thereby driving liquidity.


That’s a positive sign, right? But, are there any other implications one needs to consider here?

No other implications as I know.

Yes, that’s a favorable corporation action in the sense that it encourages more retail participation. Apart from driving liquidity, I can’t think of any other implications that it’ll have. Maybe @Bhuvan could help.


For you as an investor, no implications. ETFs haven’t really take off in India. Reliance (Nippon) is one of the few AMCs which is serious about ETFs. Like Venu said, they are doing this to drive volumes.