Consider the following statements about Infrastructure Debt Funds IDFs 1 These are investment vehicl...........

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Consider the following statements about Infrastructure Debt Funds (IDFs)

1.These are investment vehicles to accelerate the flow of long term debt to the sector.

2.Bonds floated by the IDFs can be subscribed to in US dollars or Indian rupees.

3.IDFs income is subject to payment of Income Tax.

How many of the statements given above are correct?

Only One

Only Two

All Three

None

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Explanation:

1 and 2 only

These are investment vehicles to accelerate the flow of long-term debt to the sector. (Correct - Infrastructure Debt Funds (IDFs) are indeed investment vehicles designed to accelerate the flow of long-term debt to the infrastructure sector.)

Bonds floated by the IDFs can be subscribed to in US dollars or Indian rupees. (Correct - Bonds issued by IDFs can be subscribed to in either US dollars or Indian rupees, providing flexibility in attracting funds from domestic and international investors.)

IDFs' income is subject to the payment of Income Tax. (Incorrect - The income of IDFs is usually exempt from income tax. IDFs typically enjoy certain tax benefits to encourage investments in the infrastructure sector.)