alleryStart learning →Which of these bodies may sponsor an Infrastructure Debt Fund set up as a Mutual Fund?
AOnly individual investors
BState governments only
CCommercial banks and NBFCs
DOnly foreign institutional investors
Answer & Solution
Correct answer: C. Commercial banks and NBFCs
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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