Which one of the following statements is not correct?
- A.Creation of National Investment and Infrastructure Fund (NIIF) was announced in the Union Budget, 2015-16.
- B.NIIF is a fund for enhancing infrastructure facility in the country.
- C.NIIF and NIF (National Investment Fund) are the names of the same organization.
- D.NIIF can have more than one alternative investment fund.
Correct answer
Explanation
The correct answer is C. NIIF and the National Investment Fund are two different bodies with different purposes.
The National Investment Fund was created in 2005 to hold the money the government raised from disinvestment of public sector enterprises, and it is part of the Public Account of India. The National Investment and Infrastructure Fund was announced in the Union Budget 2015-16 and set up in December 2015 as India's first infrastructure-focused sovereign-linked fund, with the government holding a minority stake alongside domestic and foreign investors. NIIF is registered with SEBI as alternative investment funds and runs several of them, such as the Master Fund, the Fund of Funds and the Strategic Opportunities Fund.
Option A is correct as a statement because the Finance Minister announced NIIF in the 2015-16 Budget. Option B is correct because NIIF exists to raise and invest money in infrastructure. Option D is correct because NIIF manages more than one alternative investment fund.
Exam tip: NIF of 2005 holds disinvestment proceeds; NIIF of 2015 invests in infrastructure.
Practice Questions
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- C.The share of agriculture has remained static.
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