Skip to content

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

Which of the following best describes the valuation requirement for the assets of an InvIT under the SEBI InvIT Regulations?

InvIT assets must be valued by an independent valuer, with a full valuation at least annually and half-yearly updates as prescribed. Valuation by trustee or sponsor officers is not independent, and it is not a one-time exercise at registration or waived for cash-generating assets.

  1. AValuation is done by the trustee's own officers at the end of each year
  2. BValuation is done by the sponsor's statutory auditor once at registration only
  3. CValuation is done by an independent valuer, with a full valuation at least once a year and updates as prescribed for half-yearly periodsCorrect
  4. DValuation is not required if the assets are generating cash flows

Explanation

InvIT assets must be valued by an independent valuer. A full valuation is required at least once a year, with half-yearly updates as required. In-house or sponsor-linked valuation lacks independence, and cash generation does not exempt valuation.

Did you get it right without looking?

One question tells you little. A timed set on Infrastructure Investment Trusts shows your real accuracy, how long you take and where you lose marks.

Practise Infrastructure Investment TrustsFree diagnostic mock

More Infrastructure Investment Trusts questions