SEBI proposes road InvITs change allowing debt-funded maintenance in distributions
Securities and Exchange Board of India (SEBI) is looking to tweak how Infrastructure Investment Trusts (InvITs) in the road sector handle their cash flows.
The big change? Major maintenance costs paid with borrowed money may be allowed to be added back into what's distributed to investors anymore.
Right now, these expenses are treated as operating costs, which means less cash goes out, even if the money was borrowed.
SEBI proposal needs 60% investor approval
SEBI has proposed these updates for road projects of InvITs and need at least 60% of votes cast in favor.
InvITs will have to share more details about maintenance debt, future payouts, and other funding options.
Auditors must confirm everything lines up with agreements and that debt was used for expenses.
SEBI is also asking for public feedback until June 22, so if you're interested in how India manages its infrastructure investments, now's your chance to weigh in!