Key facts
- SEBI is considering rule changes for road InvITs.
- Proposed changes aim to allow higher investor payouts.
- Debt-funded major maintenance expenses may be excluded from distributable cash flow calculations.
- The proposal follows a representation from the Bharat InvITs Association (BIA).
Infrastructure Investment Trusts (InvITs) are investment vehicles that own income-generating real assets, similar to Real Estate Investment Trusts (REITs). Road InvITs, specifically, own and operate road infrastructure projects. The net distributable cash flow is a critical metric that determines how much cash InvITs can distribute to their investors. Changes to this calculation could significantly impact investor returns and the attractiveness of these instruments.