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Consider the following statements regarding Infrastructure investment trusts (InvITs).
1. InvITs are pooled investment vehicles which enable direct investment of capital from investors in primarily operational infrastructure projects.
2. Foreign portfolio investors (FPIs) can also invest in InvIT debt securities.
3. The Pension Fund Regulatory and Development Authority (PFRDA) allows private sector NPS subscribers to invest in units issued by InvITs.
Which of the above statements is/are correct?
  • a)
    1, 2
  • b)
    1, 3
  • c)
    2, 3
  • d)
    1, 2, 3
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Consider the following statements regarding Infrastructure investment ...
InvITs are pooled investment vehicles which enable direct investment of capital from investors in primarily operational infrastructure projects. 
Earlier this year, the Insurance Regulatory and Development Authority of India (IRDAI) allowed domestic insurers to invest in debt securities and subscribe to units of listed InvITs.
The Reserve Bank of India in November 2021 amended foreign exchange regulations allowing foreign portfolio investors (FPIs) to invest in InvIT debt securities. Further EPFO, which manages the biggest pension corpus in the country, recently approved investing up to 5 per cent of the annual deposits in alternative investment funds (AIFs) including InvITs. This is in addition to the already established rules by the Pension Fund Regulatory and Development Authority (PFRDA) which allow private sector (tier 1) NPS subscribers to invest in units issued by InvITs.
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Most Upvoted Answer
Consider the following statements regarding Infrastructure investment ...
Explanation:
Infrastructure investment trusts (InvITs) are a type of investment vehicle that enable direct investment of capital from investors in primarily operational infrastructure projects. They are similar to mutual funds, but instead of investing in stocks or bonds, they invest in infrastructure projects such as roads, airports, power plants, etc.

Statement 1: InvITs are pooled investment vehicles which enable direct investment of capital from investors in primarily operational infrastructure projects.
This statement is correct. InvITs are investment vehicles that pool money from investors and invest it in operational infrastructure projects. They provide an avenue for investors to participate in infrastructure projects and earn returns from them.

Statement 2: Foreign portfolio investors (FPIs) can also invest in InvIT debt securities.
This statement is correct. Foreign portfolio investors (FPIs) are allowed to invest in InvIT debt securities, subject to certain conditions and regulations imposed by the Securities and Exchange Board of India (SEBI). This allows InvITs to attract foreign capital and broaden their investor base.

Statement 3: The Pension Fund Regulatory and Development Authority (PFRDA) allows private sector NPS subscribers to invest in units issued by InvITs.
This statement is correct. The Pension Fund Regulatory and Development Authority (PFRDA) has allowed private sector National Pension System (NPS) subscribers to invest in units issued by InvITs. This move is aimed at providing NPS subscribers with an additional investment option and diversifying their investment portfolio.

Therefore, all three statements are correct. InvITs are pooled investment vehicles that allow direct investment in operational infrastructure projects, foreign portfolio investors can invest in InvIT debt securities, and private sector NPS subscribers are allowed to invest in units issued by InvITs.
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Consider the following statements regarding Infrastructure investment trusts (InvITs).1. InvITs are pooled investment vehicles which enable direct investment of capital from investors in primarily operational infrastructure projects.2. Foreign portfolio investors (FPIs)can also invest in InvIT debt securities.3. The Pension Fund Regulatory and Development Authority (PFRDA) allows private sector NPS subscribers to invest in units issued by InvITs.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements regarding Infrastructure investment trusts (InvITs).1. InvITs are pooled investment vehicles which enable direct investment of capital from investors in primarily operational infrastructure projects.2. Foreign portfolio investors (FPIs)can also invest in InvIT debt securities.3. The Pension Fund Regulatory and Development Authority (PFRDA) allows private sector NPS subscribers to invest in units issued by InvITs.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Infrastructure investment trusts (InvITs).1. InvITs are pooled investment vehicles which enable direct investment of capital from investors in primarily operational infrastructure projects.2. Foreign portfolio investors (FPIs)can also invest in InvIT debt securities.3. The Pension Fund Regulatory and Development Authority (PFRDA) allows private sector NPS subscribers to invest in units issued by InvITs.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Infrastructure investment trusts (InvITs).1. InvITs are pooled investment vehicles which enable direct investment of capital from investors in primarily operational infrastructure projects.2. Foreign portfolio investors (FPIs)can also invest in InvIT debt securities.3. The Pension Fund Regulatory and Development Authority (PFRDA) allows private sector NPS subscribers to invest in units issued by InvITs.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'D'. Can you explain this answer?.
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