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

Which statement about the investment manager of an InvIT is correct under the SEBI InvIT Regulations?

The investment manager manages the InvIT's assets and investments and is responsible for disclosures and compliance with the regulations. It is a company or LLP, does not hold the assets in its own name, and is not primarily a construction contractor.

  1. AIt must be a registered trust and cannot be a company or LLP
  2. BIt manages the assets and investments of the InvIT and ensures disclosures and compliance with the regulationsCorrect
  3. CIt holds the InvIT assets in its own name for safe custody
  4. DIt is appointed solely to carry out construction work on the projects

Explanation

The investment manager is the entity that manages the InvIT's assets and investments and makes the required disclosures to unit holders and the exchanges. It is a company or LLP, not a trust. Legal holding of assets is the trustee's role, and construction is the project manager's function.

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