CS Professional · Strategic Management and Corporate Finance · Infrastructure Investment Trusts
Which of the following parties is the entity that holds the InvIT's assets and is the legal owner on behalf of unit holders, while being required to supervise the activities of the investment manager?
The trustee holds the InvIT's assets in trust for unit holders and oversees the investment manager's activities. The sponsor merely sets up the trust, and the project manager looks after project execution. Hence the trustee is the correct answer.
- ASponsor
- BTrusteeCorrect
- CProject manager
- DMerchant banker
Explanation
An InvIT is set up as a trust, and the trustee, registered with SEBI, holds the InvIT assets in trust for the benefit of unit holders and oversees the investment manager's activities. The sponsor sets up the trust, and the project manager only handles project execution.
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