SEBI proposes relaxed norms for infrastructure investment trusts

To make it easier to raise funds for infrastructure projects from capital markets, the Securities and Exchange Board of India (SEBI) on Thursday proposed to relax its norms for Infrastructure Investment Trusts (InvITs) by lowering the sponsors’ mandatory holding to 10 per cent and by allowing greater operational flexibilities.

Under the proposed norms for InvITs, a new investment product for arranging long-term financing for infrastructure projects, SEBI has suggested allowing such trusts to invest in two-level SPV (special purpose vehicle) structure.

Currently, InvITs can either hold infrastructure assets either directly or through an SPV, in which such a trust holds control. It has been now proposed to allow InVITs to invest in a holding company which would further invest in other SPVs.

Source: TH

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