Where do SPIcE units initially come from?
Initially, SPIcE units will be created out of IPO proceeds. Subsequently, SPIcE units will be created and redeemed on an on-going basis through a creation and redemption process between the Authorized Participants and the Fund. Authorized Participants are generally large Institutions/Arbitrageurs/Market Makers/Brokers who hold large chunks of SENSEX stocks and exchange the same for SPIcE units. Thus the trading of SPIcE units on the stock exchanges for investors would be totally separate from the creation process.