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Which of these bodies may sponsor an Infrastructure Debt Fund set up as a Mutual Fund?

A{'text': 'Only individual investors', 'label': 'A'}
B{'text': 'State governments only', 'label': 'B'}
C{'text': 'Commercial banks and NBFCs', 'label': 'C'}
D{'text': 'Only foreign institutional investors', 'label': 'D'}
Answer & Solution
Correct answer: C. {'text': 'Commercial banks and NBFCs', 'label': 'C'}
1. Infrastructure Debt Funds are close-ended schemes for infrastructure debt. 2. They can be structured as a Mutual Fund (regulated by SEBI) or as an NBFC (regulated by RBI). 3. Commercial banks and NBFCs are permitted to sponsor an IDF-MF. 4. Only banks and Infrastructure Finance Companies can sponsor an IDF-NBFC. _Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §2.2 IDF paragraph_
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