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JAIIB IE&IFS Unit 45 — REITs and InvITs: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 45 — REITs and InvITs (Module D — Financial Products and Services). The Mock Centre holds 78 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module D78 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. REIT = mutual-fund-like pooled vehicle over real estate/mortgage assets; unit = part ownership; born USA 1960 (Cigar Excise Tax Extension Act); India — mooted 2007 (book), SEBI (REIT) Regulations 2014; first = Embassy REIT (IPO Mar 2018 per book); Indian REITs = OFFICE-focused; SEBI-regulated.
  2. Architecture: sponsor (creates; ≥5% each post-offer) → trustee (holds) → manager (operates) → unit holders (75/25 indicative split); SPV = domestic company, REIT ≥50% equity.
  3. Types: equity (rent/dividends), mortgage (~10% into mortgages; earns NIM), hybrid, retail (≥24% commercial retail), healthcare.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
A REIT unit represents:
Why (b): A REIT unit represents PART OWNERSHIP OF THE TRUST'S ASSETS — fractional beneficial ownership of a property portfolio for a few thousand rupees.
Question 2 of 5
The real estate company forming a REIT becomes the:
Why (b): The real estate company forming a REIT becomes the SPONSOR — the promoter figure who sets up the trust, exactly like a mutual fund sponsor.
Question 3 of 5
Invests in hospitals, nursing facilities, medical centres:
Why (b): HEALTHCARE REITs invest in hospitals, nursing facilities and medical centres — the sector specialisation for medical property.
Question 4 of 5
REITs must distribute to unit-holders at least:
Why (b): Mandatory 90% payout is what makes REIT units yield instruments rather than growth hoards.
Question 5 of 5
India's first listed REIT was:
Why (a): Embassy Office Parks REIT's 2019 listing opened the Indian market (SEBI's framework dating from 2007/2014 regulations); Mindspace and Brookfield followed — office-space-heavy portfolios.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
REITInvITReal estate vs infrastructure trusts
SponsorTrusteeCreates vs holds
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.