National Investment and Infrastructure Fund (NIIF)

About National Investment and Infrastructure Fund

• It is an investor-owned fund manager, anchored by the Government of India (GoI) in collaboration with leading global and domestic institutional investors. 
• It is India’s first-ever sovereign wealth fund (SWF) which was set up in the year 2015.
• It is an institution for enhancing infrastructure financing by investing in greenfield (new), brownfield (existing) and stalled projects.
• The primary goal of setting up NIIF was to optimize the economic impact largely through investing in infrastructure-related projects.
• Types of NIIF Funds
  • Master Fund: This fund primarily invests in infra-related projects such as roads, ports, airports, and power. Also, the master fund invests in well-established enterprises that are into a long-term agreement and are operating in a regulated environment with a good history.
  • Fund of Funds:  It looks to invest in funds managed by the renowned fund managers having an excellent track record. The fund of funds invests as anchor investors, and this enables the fund managers to accumulate more funds from the institutional investors
  • Strategic Fund: This fund is registered as an Alternative Fund II under the Securities and Exchange Board of India (SEBI) in India. Strategic funds invest primarily in equity and equity- linked instruments.
• The funds are registered as Alternative Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI). 

Q1) What is SEBI?

The Securities and Exchange Board of India (SEBI) is the regulatory authority responsible for overseeing and regulating the securities and capital markets in India. SEBI was established on April 12, 1992, as an independent statutory body with its headquarters in Mumbai, India. Its primary objective is to protect the interests of investors and promote the healthy growth and development of the securities market in India

Source: NIIF unveils $600 mn India-Japan Fund