CS Professional · Strategic Management and Corporate Finance · Infrastructure Investment Trusts
Who is responsible for holding the assets of an InvIT in trust and ensuring that the investment manager acts in the interest of unitholders?
The trustee holds the InvIT's assets in trust and oversees the investment manager on behalf of unitholders. The trustee must be a SEBI-registered debenture trustee and not be an associate of the sponsor. Project manager, valuer and merchant banker have other roles.
- AThe project manager
- BThe trusteeCorrect
- CThe valuer
- DThe merchant banker
Explanation
The InvIT is set up as a trust, and the trustee, who must be a SEBI-registered debenture trustee and independent of the sponsor, holds the assets and oversees the investment manager. The project manager runs the assets, the valuer values them and the merchant banker handles the offer.
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