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Established under the Securities and Exchange Board of India (SEBI) Infrastructure Investment Trust (InvIT) Regulations in 2014, InvITs have established themselves as pivotal instruments in India’s financial sector, channelling investments into robust, revenue-generating infrastructure assets. They stand out as models of financial innovation aimed at sustainable development. Designed with a tiered structure where a sponsor sets up the InvIT, which then invests in various eligible projects directly or through special purpose vehicles (SPVs), these trusts offer a unique blend of stability and profitability.
This thought leadership report explores the tax and regulatory frameworks for InvITs, as well as key considerations for establishing or transitioning into this investment structure. It underscores their integral role in shaping India’s infrastructure development and their ability to attract foreign direct investment without prior governmental approval, enhancing their capacity to fund large-scale infrastructure projects.
