Question 1

Real Estate Investment Trusts (REITs) primarily allow investors to invest in:

Income-generating real estate assets (like offices, malls).Agricultural Land.Under-construction residential properties.Gold and commodities.

View Explanation

REITs pool money to own and operate income-generating real estate. The regulations require at least 80% of the value of the REIT assets to be invested in completed and rent-generating properties.

Question 2

To ensure regular income for investors, SEBI regulations mandate that REITs must distribute not less than what percentage of their Net Distributable Cash Flows (NDCF) to unit holders?

75%100%90%50%

View Explanation

REITs are required to distribute at least 90% of their Net Distributable Cash Flows to investors at least once every six months, ensuring they function as income-generating vehicles.

Question 3

Real Estate Investment Trusts (REITs) are regulated in India by:

RBIRERA (Real Estate Regulatory Authority)SEBIMinistry of Housing and Urban Affairs

View Explanation

REITs are investment vehicles that pool funds to invest in real estate. They function like mutual funds and are regulated by SEBI under the REIT Regulations, 2014.

Question 4

As per SEBI regulations for REITs, the "Sponsor(s)" must collectively hold a minimum of what percentage of units for a specified period post-listing?

10%25%15%50%

View Explanation

This is the "Skin in the Game" requirement. Sponsors must hold at least 25% of the units for 3 years from the date of listing to ensure their continued commitment to the REIT.

Question 5

A publicly offered REIT is required to disclose its Net Asset Value (NAV) at least:

WeeklyQuarterlyDailySemi-annually

View Explanation

Since real estate valuations do not change daily, SEBI mandates REITs to declare NAV semi-annually based on a full valuation of assets.

Question 6

Dividends distributed by a REIT to its unit holders are generally exempt from tax in the hands of the unit holder, PROVIDED:

The REIT has NOT opted for the concessional tax regime.The dividend amount is less than ?5000.The REIT has opted for the concessional tax regime.The investor is a foreigner.

View Explanation

If the REIT SPV has not opted for the lower tax regime (Section 115BAA), the dividend income is tax-free for unit holders. If SPV opts for lower tax, dividends are taxable for investors.

Question 7

A REIT must invest at least what percentage of its asset value in completed and rent-generating properties?

60%90%50%80%

View Explanation

SEBI regulations mandate that at least 80% of the value of the REIT assets must be invested in completed and revenue-generating properties to minimize development risk for investors.

Question 8

What is the minimum "Public Float" required for a listed REIT/InvIT?

10%50%75%25%

View Explanation

Listed REITs/InvITs must maintain a minimum public shareholding (float) of 25% to ensure liquidity and broad ownership.

JAIIB Quiz

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