Current context: The Union Cabinet gave its nod on 11th Dec 19 to authorize National Highways Authority of India, NHAI to set up Infrastructure Investment Trust (InvIT).
b. Only 2
c. Both 1 and 2
d. None of the above
- The Ministry of Road Transport and Highways has given the proposal to set up the Infrastructure Investment Trust.
- The setting up of the Infrastructure Investment Trust (InvIT) is approved as per Guidelines issued by Securities and Exchange Board of India, SEBI.
- The proposal seeks to enable NHAI to perform the functions including:
- To monetize completed National Highways that have a toll collection track record of at least one year.
- NHAI reserves the right to levy a toll on the identified highway.
- Provides greater flexibility to investors.
- Create opportunities like the generation of specialized Operation and Maintenance Concessionaires.
- Attract long-term capital to the Indian highway market and retail domestic savings.
- NHAI's InvIT will be a Trust established by NHAI under the Indian Trust Act, 1882 and Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.
- The objective of the InvIT Trust is to invest primarily in infrastructure projects (as defined by Ministry of Finance).
- InvIT may hold assets either directly or through an SPV or a holding.
Question:
Q.1 The Union Cabinet has approved the National Highways Authority of India, NHAI to set up Infrastructure Investment Trust (InvIT) under?- Indian Trust Act, 1882
- Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.
b. Only 2
c. Both 1 and 2
d. None of the above
