NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles
Which statement about Infrastructure Investment Trusts (InvITs) in India is correct?
InvITs pool money from investors to invest in infrastructure assets such as roads or transmission lines and pass on the cash flows to unitholders. Their units can be listed on stock exchanges, and they are not managed by depositories.
- AThey pool money from investors to invest in infrastructure projects and distribute cash flows to unitholdersCorrect
- BThey can only invest in residential apartments for sale
- CThey are barred from listing their units on stock exchanges
- DThey are managed by the depository on behalf of investors
Explanation
InvITs are trust structures that pool funds to own infrastructure assets such as roads and power transmission, and they distribute cash flows to unitholders. Their units can be listed on exchanges.
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