Question

NSE Indices has launched a new index that will track the overall performances of listed real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).Thus,  the exposure to a particular REIT or InvIT is being capped at ______.

A 23 percent Correct Answer Incorrect Answer
B 28 percent Correct Answer Incorrect Answer
C 33 percent Correct Answer Incorrect Answer
D 35 percent Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

NSE Indices has launched a new index that will track the overall performances of listed real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).   The weights of securities in the index will be determined by their free-float market capitalisation, with the exposure to a particular REIT or InvIT being capped at 33 per cent. Also, the aggregate weight of the top-three securities is capped at 72 per cent. At present, there are six securities in the index, with Embassy Office Parks Reit having the highest weightage at 33 per cent. Powergrid Infrastructure Investment has the second highest weight, at 20 per cent.

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