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With reference to Infrastructure Investment Trusts (InvITs), consider the following statements:
1. They are designed to pool small sums of money for investment in infrastructure projects.
2. They are regulated by the Reserve Bank of India (RBI).
3. They are suitable for high net worth individuals.
Which of the above statements is/are correct?
- a)1 only
- b)2 only
- c)1 and 3 only
- d)1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
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With reference to Infrastructure Investment Trusts (InvITs), consider ...
- About Infrastructure Investment Trusts (InvIT):
- They are designed to pool small sums of money from a number of investors to invest in assets that give cash flow over a period of time. Part of this cash flow would be distributed as a dividend back to investors.
- They are instruments that work like mutual funds. Hence, statement 1 is correct.
- InvITs are structured so as to give investors an opportunity to invest in infrastructure assets with predictable cash flows, while the asset owners can raise upfront resources against future revenue cash flows from those assets, which in turn can be deployed in new assets or used to repay debt.
- InvITs are regulated by the Securities and Exchange Board of India (SEBI) (Infrastructure Investment Trusts) Regulations, 2014. Hence, statement 2 is not correct.
- The minimum investment amount in an InvIT Initial Public Offering (IPO) is Rs 10 lakh, therefore, InvITs are suitable for high net worth individuals, institutional and non-institutional investors. Hence, statement 3 is correct.
- They are designed to pool small sums of money from a number of investors to invest in assets that give cash flow over a period of time. Part of this cash flow would be distributed as a dividend back to investors.
Most Upvoted Answer
With reference to Infrastructure Investment Trusts (InvITs), consider ...
Infrastructure Investment Trusts (InvITs)
Infrastructure Investment Trusts (InvITs) are a type of investment vehicle that enables investors to pool their funds together to invest in infrastructure projects. Let's analyze the statements provided in the question:
1. They are designed to pool small sums of money for investment in infrastructure projects.
- This statement is correct. InvITs allow retail investors to participate in large infrastructure projects by pooling their funds with others, making it accessible for investors with small sums of money to invest in infrastructure.
2. They are regulated by the Reserve Bank of India (RBI).
- This statement is incorrect. InvITs are regulated by the Securities and Exchange Board of India (SEBI), not the Reserve Bank of India. SEBI is the regulatory body responsible for overseeing the functioning of InvITs in India.
3. They are suitable for high net worth individuals.
- This statement is correct. While InvITs are open to retail investors, they are also suitable for high net worth individuals who are looking to invest in infrastructure projects. High net worth individuals can benefit from the potential returns generated by investing in InvITs.
In conclusion, statement 1 and statement 3 are correct regarding Infrastructure Investment Trusts (InvITs). InvITs provide an opportunity for both small and large investors to participate in infrastructure projects, making them a suitable investment option for a wide range of investors.
Infrastructure Investment Trusts (InvITs) are a type of investment vehicle that enables investors to pool their funds together to invest in infrastructure projects. Let's analyze the statements provided in the question:
1. They are designed to pool small sums of money for investment in infrastructure projects.
- This statement is correct. InvITs allow retail investors to participate in large infrastructure projects by pooling their funds with others, making it accessible for investors with small sums of money to invest in infrastructure.
2. They are regulated by the Reserve Bank of India (RBI).
- This statement is incorrect. InvITs are regulated by the Securities and Exchange Board of India (SEBI), not the Reserve Bank of India. SEBI is the regulatory body responsible for overseeing the functioning of InvITs in India.
3. They are suitable for high net worth individuals.
- This statement is correct. While InvITs are open to retail investors, they are also suitable for high net worth individuals who are looking to invest in infrastructure projects. High net worth individuals can benefit from the potential returns generated by investing in InvITs.
In conclusion, statement 1 and statement 3 are correct regarding Infrastructure Investment Trusts (InvITs). InvITs provide an opportunity for both small and large investors to participate in infrastructure projects, making them a suitable investment option for a wide range of investors.
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With reference to Infrastructure Investment Trusts (InvITs), consider the following statements:1. They are designed to pool small sums of money for investment in infrastructure projects.2. They are regulated by the Reserve Bank of India (RBI).3. They are suitable for high net worth individuals.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
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With reference to Infrastructure Investment Trusts (InvITs), consider the following statements:1. They are designed to pool small sums of money for investment in infrastructure projects.2. They are regulated by the Reserve Bank of India (RBI).3. They are suitable for high net worth individuals.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about With reference to Infrastructure Investment Trusts (InvITs), consider the following statements:1. They are designed to pool small sums of money for investment in infrastructure projects.2. They are regulated by the Reserve Bank of India (RBI).3. They are suitable for high net worth individuals.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to Infrastructure Investment Trusts (InvITs), consider the following statements:1. They are designed to pool small sums of money for investment in infrastructure projects.2. They are regulated by the Reserve Bank of India (RBI).3. They are suitable for high net worth individuals.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?.
With reference to Infrastructure Investment Trusts (InvITs), consider the following statements:1. They are designed to pool small sums of money for investment in infrastructure projects.2. They are regulated by the Reserve Bank of India (RBI).3. They are suitable for high net worth individuals.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about With reference to Infrastructure Investment Trusts (InvITs), consider the following statements:1. They are designed to pool small sums of money for investment in infrastructure projects.2. They are regulated by the Reserve Bank of India (RBI).3. They are suitable for high net worth individuals.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to Infrastructure Investment Trusts (InvITs), consider the following statements:1. They are designed to pool small sums of money for investment in infrastructure projects.2. They are regulated by the Reserve Bank of India (RBI).3. They are suitable for high net worth individuals.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?.
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