Consider the following statements about Infrastructure Investment Trusts InvITs sometime seen in new...........

Economic Affairs Investment Models

Consider the following statements about Infrastructure Investment Trusts (InvITs) sometime seen in news:

1. These are mutual fund like institutions that enable investments into the infrastructure sector by pooling small sums of money from multitude of individual investors.

2. InvITs are regulated by Securities and Exchange Board of India.

Which of the above statements is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

It was in news because, the government is identifying assets, including rail lines, national highways and power transmission lines, for monetising through infrastructure investment trusts (InvITs).
These are mutual fund like institutions that enable investments into the infrastructure sector by pooling small sums of money from multitude of individual investors for directly investing in infrastructure so as to return a portion of the income to unit holders of InvITs, who pooled in the money. Hence statement 1 is Correct.
InvITs are regulated by Securities and Exchange Board of India. Hence statement 2 is also correct.