n NISM Certifications
X NISM Series X
Medium

When an AIF is constituted as a trust, between whom is the 'Trust Indenture' executed?

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The Trustee and the Investors

  2. B

    The Sponsor and the Beneficiaries

  3. The Sponsor and the Trustee

    Correct answer

  4. D

    The Sponsor and the Manager

Why this is the answer

The 'Trust Indenture' is a registered document executed between the sponsor and the trustee to establish and govern the trust structure of the AIF.

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