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Infrastructure Investment Trust (InvIT) - IndiaFilings Last updated: December 17th, 2019 5:46 PM

Infrastructure Investment Trust (InvIT)

An Infrastructure Investment Trust (InvIT) is an Investment Scheme similar to a mutual fund, which authorizes the direct investment of money from several individuals and institutional investors in infrastructure projects to earn a small portion of the income as a return. The InvITs are regulated by the SEBI Infrastructure Investment Trusts Regulations, 2014. InvIT can invest in infrastructure projects, either directly or through a special purpose vehicle (SPV). In the case of Public-Private Partnership (PPP) projects, the investments should be made through SPV. In this article; we will look at the Infrastructure Investment Trusts (InvIT) in detail.

Advantages of InvIT

The benefit of InvIT is explained in detail below:
  • InvITs is proposed to provide a suitable structure for financing or refinancing of infrastructure projects in the country.
  • InvIT is providing wider and long-term re-finance for existing infrastructure projects
  • InvIT is freeing up of the current developer