Question

Q17. Consider the following statements related to National Investment and Infrastructure Fund (NIIF):

1. NIIF is registered with SEBI as Category II Alternative Investment Fund (AIF)

2. The Purpose of the fund is to receive disinvestment proceeds of central public sector enterprises

3. 5% of the total funds collected in it becomes a part of Consolidated Fund of India

Which of the above statement(s) is/are correct?

• A. (a) Only 1
• B. (b) Only 2 and 3
• C. (c) Only 3
• D. (d) Only 1 and 2

Answer 1

The correct option is A

(a) Only 1

National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country.

This is different from the National Investment Fund.

NIIF was proposed to be set up as a Trust, to raise debt to invest in the equity of infrastructure finance companies such as Indian Rail Finance Corporation (IRFC) and National Housing Bank (NHB). The idea is that these infrastructure finance companies can then leverage this extra equity, manifold. In that sense, NIIF is a banker of the banker of the banker.

NIIF got registered with SEBI as Category II Alternative Investment Fund (AIF) on December 28, 2015.

Statement 2 is about National Investment Fund and not NIIF. Statement 3 is wrong.