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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, REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) must distribute at least 90% 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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