CS Professional · Strategic Management and Corporate Finance · Infrastructure Investment Trusts
Under the SEBI (Infrastructure Investment Trusts) Regulations, 2014, which party to an InvIT is responsible for holding the assets of the trust in its name on behalf of the unit holders and for overseeing the activities of the investment manager?
The trustee holds the InvIT's assets in trust for unit holders and supervises the investment manager. The sponsor only establishes the trust, the project manager handles project execution, and the valuer assesses asset value, so none of them has the holding and oversight role.
- ASponsor
- BTrusteeCorrect
- CProject manager
- DValuer
Explanation
The trustee holds the InvIT assets in trust for unit holders and oversees the investment manager's activities. The sponsor sets up the trust and holds the initial stake. The project manager looks after the day-to-day implementation of projects. The valuer only determines asset values.
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