NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles
In India, a Real Estate Investment Trust (REIT) is regulated by SEBI primarily to allow investors to do which of the following?
A REIT lets investors pool money and hold units that give them returns from income-generating real estate, mainly rentals. Investors do not own any specific property directly; the trust owns the assets and distributes most of its income to unit holders.
- APool money and earn returns from income-generating real estate through unitsCorrect
- BDirectly own a specific flat in a project chosen by the investor
- CTrade in commodity futures linked to property prices
- DLend money only to government-owned housing agencies
Explanation
A REIT pools money from investors and invests in completed, income-generating real estate, distributing most of the income to unit holders. Investors hold units, not specific properties. The other options describe direct ownership, commodity trading or government lending, none of which is the REIT structure.
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