RBI Grade BNABARD ESISEBI
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Context:
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
- Securities and Exchange Board of India (Sebi) has granted in-principle approval to Raajmarg Infra Investment Trust (RIIT) as an Infrastructure Investment Trust (InvIT).
- Final registration will be granted after RIIT meets specific conditions over the next six months.
Purpose and Objectives
- RIIT is designed to monetise National Highway assets.
- It aims to create a high-quality, long-term investment vehicle, primarily targeting retail and domestic investors.
- Focus on transparency, investor protection, and compliance standards under Sebi’s public InvIT framework.
Infrastructure Investment Trust (InvIT)
- An InvIT is a financial instrument that enables investment in income-generating infrastructure assets such as highways, power plants, ports, and renewable energy projects.
- It allows investors to earn returns from infrastructure projects without directly owning the physical assets.
Types of InvITs
- Public InvITs: Accessible to retail investors; must comply with SEBI’s disclosure and governance norms.
- Private InvITs: Limited to qualified institutional buyers (QIBs).
SEBI Criteria For InvITs:
| Criteria | Public InvIT | Private InvIT |
|---|---|---|
| Asset Type | Completed, revenue-generating infrastructure (≥80% of assets) | Same |
| Minimum Asset Size | ₹500 crore | ₹250 crore |
| Investors | ≥1,000 | Qualified Institutional Buyers (QIBs) only |
| Listing | Mandatory on stock exchange within 12 months | Not mandatory |
| Distribution | ≥90% of net distributable cash flows, semi-annual | Same |
| Debt Limit | Max 49% of asset value | Same |