The regulator is more carefully scrutinising applications by infrastructure investment vehicles that have a limited number of investors. They have been asked to broaden their investor base before application approval, according to two people familiar with the matter. The Securities and Exchange Board of India is concerned about the structure being used for getting around tax requirements, according to one of the sources. “They are apparently informed that people are structuring investments through InvITs to avoid tax,” said one of the people. A second person confirmed the move. The scrutiny applies to private unlisted InvITs. An InvIT is an investment vehicle which holds an infrastructure asset such as roads or power plant. The cash flow from the underlying asset is used to pay investors who have bought units in the InvIT. It is considered a useful way to monetise such assets, and also raise money for funding infrastructure projects.