Consider the following statements about the National Investment Fund (NIF):
- The fund is used to recapitalise public sector banks (PSBs) and state-owned insurance companies
- The fund is managed by Small Industries Development Bank of India (SIDBI)
Which of the above statements is/are correct?
First statement is correct. Second statement is incorrect because the NIF was established in 2005 and is managed by three fund managers — UTI Asset Management Company, SBI Funds Management Company and LIC Mutual Fund Asset Management Company. The fund is used to subscribe to shares issued by the Central Public Sector Enterprise (CPSEs), including public sector banks and public sector insurance companies, on rights basis so as to ensure the overall government ownership does not fall below 51 per cent.
This question is a part of GKToday's Integrated IAS General Studies Module