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Consider the following statements regarding the national investment fund constituted in 2005 by the Government of India.
1. The proceeds from disinvestment will be channelized into the NIF.
2. The Corpus of the national investment fund will be of a temporary nature.
Which of these statements is/are correct?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding the national investment f...
National Investment Fund (NIF) Constituted by Government of India
Statement 1: The proceeds from disinvestment will be channelized into the NIF.
This statement is correct. The National Investment Fund (NIF) was constituted by the Government of India in 2005 to channelize the proceeds from disinvestment of central public sector enterprises (CPSEs) and other assets into productive and socially-oriented sectors. The disinvestment proceeds of CPSEs and other assets are transferred to the NIF, which in turn invests these funds in selected public sector enterprises and other channels such as infrastructure projects, social sector schemes, and recapitalization of public sector banks. The NIF is managed by a committee comprising of the Finance Minister, Minister of State for Finance, and the Governor of the Reserve Bank of India.
Statement 2: The Corpus of the national investment fund will be of a temporary nature.
This statement is incorrect. The corpus of the NIF is not of a temporary nature. The NIF is a permanent fund, and the corpus of the fund is invested in different sectors to generate returns and finance various developmental schemes. The objective of the NIF is to provide a stable source of funding for various developmental projects and schemes, including infrastructure, social sector, and recapitalization of public sector banks. The corpus of the fund is invested in a diversified portfolio of financial instruments, including equity shares, debt securities, and other money market instruments.
Conclusion
In conclusion, the statement "The proceeds from disinvestment will be channelized into the NIF" is correct, while the statement "The Corpus of the national investment fund will be of a temporary nature" is incorrect. The NIF is a permanent fund that channels disinvestment proceeds into productive and socially-oriented sectors to finance developmental projects and schemes.
Statement 1: The proceeds from disinvestment will be channelized into the NIF.
This statement is correct. The National Investment Fund (NIF) was constituted by the Government of India in 2005 to channelize the proceeds from disinvestment of central public sector enterprises (CPSEs) and other assets into productive and socially-oriented sectors. The disinvestment proceeds of CPSEs and other assets are transferred to the NIF, which in turn invests these funds in selected public sector enterprises and other channels such as infrastructure projects, social sector schemes, and recapitalization of public sector banks. The NIF is managed by a committee comprising of the Finance Minister, Minister of State for Finance, and the Governor of the Reserve Bank of India.
Statement 2: The Corpus of the national investment fund will be of a temporary nature.
This statement is incorrect. The corpus of the NIF is not of a temporary nature. The NIF is a permanent fund, and the corpus of the fund is invested in different sectors to generate returns and finance various developmental schemes. The objective of the NIF is to provide a stable source of funding for various developmental projects and schemes, including infrastructure, social sector, and recapitalization of public sector banks. The corpus of the fund is invested in a diversified portfolio of financial instruments, including equity shares, debt securities, and other money market instruments.
Conclusion
In conclusion, the statement "The proceeds from disinvestment will be channelized into the NIF" is correct, while the statement "The Corpus of the national investment fund will be of a temporary nature" is incorrect. The NIF is a permanent fund that channels disinvestment proceeds into productive and socially-oriented sectors to finance developmental projects and schemes.
Community Answer
Consider the following statements regarding the national investment f...
- The corpus of the National Investment Fund will be permanent.
- The Fund will be professionally managed, to provide sustainable returns without depleting the corpus, by selected Public Sector Mutual Funds (they are, UTI Asset Management Company Ltd.; SBI Funds Management Company Pvt. Ltd.; LIC Mutual Fund Asset Management Company Ltd.).
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Consider the following statements regarding the national investment fund constituted in 2005 by the Government of India.1. The proceeds from disinvestment will be channelized into the NIF.2. The Corpus of the national investment fund will be of a temporary nature.Which of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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