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Consider the following statements with reference to Infrastructure Investment Trusts (InvIT):
It is similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects.
The India Grid Trust (IndiGrid) an infrastructure investment trust (“InvIT”) is established to own inter-state power transmission assets in India.
Which of the statements given above is/are correct?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements with reference to Infrastructure In...
An Infrastructure Investment Trust (InvITs) is Collective Investment Scheme similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return.
- The InvIT is designed as a tiered structure with Sponsor setting up the InvIT which in turn invests into the eligible infrastructure projects either directly or via special purpose vehicles (SPVs).
- The InvITs are regulated by the SEBI (Infrastructure Investment Trusts) Regulations, 2014.
- After the markets regulator Securities and Exchange Board of India (Sebi) introduced InvITs in 2014, markets witnessed the listing of two public InvITs in 2017 (IRB InvIT Fund and India Grid Trust).
- The India Grid Trust (IndiGrid), sponsored by Sterlite Power Grid Ventures Limited, one of India’s leading private power transmission companies, was created in 2016 to acquire operating power transmission assets. India's first infrastructure investment trust in the power sector, IndiGrid provides investors with an opportunity to invest directly in operating power transmission assets.
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Consider the following statements with reference to Infrastructure In...
Infrastructure Investment Trusts (InvIT):
Statement 1: It is similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects.
Statement 2: The India Grid Trust (IndiGrid) is an infrastructure investment trust (“InvIT”) established to own inter-state power transmission assets in India.
Explanation:
Infrastructure Investment Trusts (InvITs) are investment vehicles that enable individual and institutional investors to directly invest in infrastructure projects. These investment vehicles are similar to mutual funds, but instead of investing in stocks and bonds, they invest in infrastructure assets.
InvITs offer an opportunity for investors to participate in the infrastructure sector, which is crucial for the economic development of a country. These trusts pool funds from various investors and use them to invest in infrastructure projects such as roads, highways, power transmission, renewable energy, etc.
InvITs are regulated by the Securities and Exchange Board of India (SEBI) and operate as a trust. They are required to have a trustee, a sponsor, and a manager. The trustee is responsible for protecting the interests of the investors, while the sponsor is responsible for establishing the trust and appointing the trustee and the manager. The manager is responsible for managing the assets of the trust and ensuring regular returns to the investors.
Statement 1: This statement is correct. InvITs function similarly to mutual funds, allowing individual and institutional investors to directly invest their money in infrastructure projects. By investing in InvITs, investors can diversify their portfolio and gain exposure to the infrastructure sector.
Statement 2: This statement is also correct. The India Grid Trust (IndiGrid) is an InvIT established to own inter-state power transmission assets in India. IndiGrid was the first InvIT to be listed on the Indian stock exchanges in 2017. It owns and operates a portfolio of power transmission assets across various states in India.
Conclusion: Both statements 1 and 2 are correct. InvITs provide a platform for individual and institutional investors to invest in infrastructure projects, and the India Grid Trust (IndiGrid) is an example of an InvIT that owns inter-state power transmission assets in India.
Statement 1: It is similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects.
Statement 2: The India Grid Trust (IndiGrid) is an infrastructure investment trust (“InvIT”) established to own inter-state power transmission assets in India.
Explanation:
Infrastructure Investment Trusts (InvITs) are investment vehicles that enable individual and institutional investors to directly invest in infrastructure projects. These investment vehicles are similar to mutual funds, but instead of investing in stocks and bonds, they invest in infrastructure assets.
InvITs offer an opportunity for investors to participate in the infrastructure sector, which is crucial for the economic development of a country. These trusts pool funds from various investors and use them to invest in infrastructure projects such as roads, highways, power transmission, renewable energy, etc.
InvITs are regulated by the Securities and Exchange Board of India (SEBI) and operate as a trust. They are required to have a trustee, a sponsor, and a manager. The trustee is responsible for protecting the interests of the investors, while the sponsor is responsible for establishing the trust and appointing the trustee and the manager. The manager is responsible for managing the assets of the trust and ensuring regular returns to the investors.
Statement 1: This statement is correct. InvITs function similarly to mutual funds, allowing individual and institutional investors to directly invest their money in infrastructure projects. By investing in InvITs, investors can diversify their portfolio and gain exposure to the infrastructure sector.
Statement 2: This statement is also correct. The India Grid Trust (IndiGrid) is an InvIT established to own inter-state power transmission assets in India. IndiGrid was the first InvIT to be listed on the Indian stock exchanges in 2017. It owns and operates a portfolio of power transmission assets across various states in India.
Conclusion: Both statements 1 and 2 are correct. InvITs provide a platform for individual and institutional investors to invest in infrastructure projects, and the India Grid Trust (IndiGrid) is an example of an InvIT that owns inter-state power transmission assets in India.
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Consider the following statements with reference to Infrastructure Investment Trusts (InvIT): It is similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects. The India Grid Trust (IndiGrid) an infrastructure investment trust (“InvIT”) is established to own inter-state power transmission assets in India. Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements with reference to Infrastructure Investment Trusts (InvIT): It is similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects. The India Grid Trust (IndiGrid) an infrastructure investment trust (“InvIT”) is established to own inter-state power transmission assets in India. Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. 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 with reference to Infrastructure Investment Trusts (InvIT): It is similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects. The India Grid Trust (IndiGrid) an infrastructure investment trust (“InvIT”) is established to own inter-state power transmission assets in India. Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. 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 with reference to Infrastructure Investment Trusts (InvIT): It is similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects. The India Grid Trust (IndiGrid) an infrastructure investment trust (“InvIT”) is established to own inter-state power transmission assets in India. Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements with reference to Infrastructure Investment Trusts (InvIT): It is similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects. The India Grid Trust (IndiGrid) an infrastructure investment trust (“InvIT”) is established to own inter-state power transmission assets in India. Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. 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 with reference to Infrastructure Investment Trusts (InvIT): It is similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects. The India Grid Trust (IndiGrid) an infrastructure investment trust (“InvIT”) is established to own inter-state power transmission assets in India. Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. 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 with reference to Infrastructure Investment Trusts (InvIT): It is similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects. The India Grid Trust (IndiGrid) an infrastructure investment trust (“InvIT”) is established to own inter-state power transmission assets in India. Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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