BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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

Which among the following organisation has allowed Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) to raise capital by issuing debt securities?

A	SIDBI
B	IRDAI
C	SEBI
D	NABARD

Explanation:

Detailed explanation-1: -The InvITs are regulated by the SEBI (Infrastructure Investment Trusts) Regulations, 2014.

Detailed explanation-2: -Real Estate Investment Trust (REIT)/ Infrastructure Investment Trust (InvIT) is a tax-efficient entity that owns a portfolio of income-generating real estate/infrastructure assets. These trusts, like mutual funds, issue units against assets held. Trust is created by a sponsor, who transfers ownership of assets.

Detailed explanation-3: -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-4: -Both big and small investors can park their funds into this investment option and reap benefits accordingly. Small investors may attempt to pool their resources along with other investors and invest the same into large commercial real estate projects.

There is 1 question to complete.