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CS Professional · Strategic Management and Corporate Finance · Infrastructure Investment Trusts

Under the SEBI (Infrastructure Investment Trusts) Regulations, 2014, which of the following correctly describes a privately placed InvIT?

A privately placed InvIT raises funds by private placement from eligible investors, and listing its units is optional. It still needs SEBI registration. Public offer with mandatory listing describes a public InvIT, not a private one.

  1. AIt raises funds through a public issue and must list on a stock exchange immediately
  2. BIt raises funds by private placement from eligible investors and may or may not list its unitsCorrect
  3. CIt can raise funds only from retail investors holding demat accounts
  4. DIt is exempt from registration with SEBI as an InvIT

Explanation

A privately placed InvIT raises money through private placement from institutional and other eligible investors, and listing of its units is optional. It must still be registered with SEBI. Public InvITs raise money through a public offer and must list; the option about exemption from registration is wrong.

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