More power to InVTs
The government’s focus on clean energy will drive big investments
With the focus on infrastructure financing and criticality of infrastructure from the country’s economic growth perspective, Infrastructure Investment Trust (InVT) regulations were introduced by market regulator SEBI in September 2014.
InVT is mainly a collective investment vehicle to enable developers of infrastructure to monetise their assets by pooling them under a single entity (trust). Subsequent amendments to InVT regulations by SEBI have also remained favourable most notably being the increase in leverage cap from 49 per cent to 70 per cent subject to certain conditions for publicly listed InVTs as well as no restriction on leverage for private unlisted InVT.