Indias capital market regulator SEBI cleared final guidelines for creation and listing of business trusts for key sectors of real estate and infrastructure on 10 August 2014. These guidelines have been cleared to help attract greater foreign and domestic investments into these sectors. What are the names of business trusts associated with real estate and infrastructure which would be created and listed with these SEBI guidelines?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

India’s capital market regulator SEBI cleared final guidelines for creation and listing of business trusts for key sectors of real estate and infrastructure on 10 August 2014. These guidelines have been cleared to help attract greater foreign and domestic investments into these sectors. What are the names of business trusts associated with real estate and infrastructure which would be created and listed with these SEBI guidelines?

A	Real Investment Trusts (RITs) and Infrastructure Investment Trusts (InvITs)
B	Real Estate Trusts (RETs) and Infrastructure Investment Trusts (InvITs)
C	Real Estate Investment (REI) and Infrastructure Trusts (InvTs)
D	Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)

Explanation:

Detailed explanation-1: -REIT or Real Estate Investment Trust is a trust registered with SEBI to carry out the activity prescribed under SEBI (Real Estate Investment Trusts) Regulations, 2014. A REIT raises funds by issuing units to investors and invest those funds primarily in assets in real estate sector.

Detailed explanation-2: -SEBI Guidelines means the SEBI (SUBSTANTIAL ACQUISITION OF SHARES AND TAKEOVERS) REGULATIONS 1997, the SECURITIES AND EXCHANGE BOARD OF INDIA (DISCLOSURE AND INVESTOR PROTECTION) GUIDELINES 2000 and any other Indian Requirements of Law in respect of any matter which may be the subject matter of this Agreement.

Detailed explanation-3: -Answer: The primary function of the SEBI as a regulator in the Indian financial sector is to ensure that the Indian stock markets operate in a safe and orderly way. India’s Securities and Exchange Board was established to defend the investors’ interests and brokers in the Indian stock market.

Detailed explanation-4: -An InvIT is established as a trust and is registered with the SEBI. Typically, infrastructure investment trust SEBI comprises 4 elements, namely – Trustee:They are required to be registered with SEBI as debenture trustees. Also, they are required to invest at least 80% into infra assets that generate steady revenue.

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