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      Question

      As per SEBI regulations, REITs and InvITs are required

      to distribute at least what percentage of their net distributable cash flows to unit holders?
      A 50% Correct Answer Incorrect Answer
      B 75% Correct Answer Incorrect Answer
      C 80% Correct Answer Incorrect Answer
      D 90% Correct Answer Incorrect Answer
      E 100% Correct Answer Incorrect Answer

      Solution

      As per SEBI regulations,Ā REITsĀ (Real Estate Investment Trusts) andĀ InvITsĀ (Infrastructure Investment Trusts) must distributeĀ at least 90%Ā of their net distributable cash flows (NDCF) to unit holders, ensuring a steady income stream, with requirements for frequency (e.g., half-yearly for public InvITs) and pass-through tax benefits. This mandatory distribution makes them attractive for investors seeking stable, high-yield investments similar to bonds.

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