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The Securities Exchange Board of India (“SEBI”), by notification dated 16.04.20261, has notified the SEBI (Infrastructure Investment Trusts) (Amendment) Regulations, 2026 (“InvIT Amendment Regulations”) amending the SEBI (Infrastructure Investment Trusts) Regulations, 2014 (“InvIT Regulations”).
The key amendments introduced in the InvIT Amendment Regulations are:
(i) Lower credit risk value of liquid mutual funds: mutual funds which qualify as liquid assets under the InvIT regulations now include units of liquid mutual fund schemes where credit risk value is at least 10 and which falls under the Class A-I or Class B-I in the potential risk class matrix as specified by SEBI. Additionally, investment norms under regulation 18 are also updated, lowering the credit risk value for units of liquid mutual funds from 12 to 10 and which now include Class B-1 liquid mutual funds
(ii) Clarification on SPV status after termination of concession agreement: The InvIT Amendment Regulations clarify that the conclusion or termination of the concession agreement of a special purpose vehicle (“SPV”) holding an infrastructure project shall not affect its status as an SPV and such an SPV shall continue to be classified as an SPV subject to the fulfilment of such conditions as may be specified by SEBI. Hence, a new sub-clause (ix) has been inserted under Regulation 18(5)(b) permitting investment in such SPVs as part of the twenty per cent permissible investment bucket available to publicly offered InvITs under Regulation 18(5)(b).
(iii) Power to SEBI for determining purpose for raising funds: If the aggregate consolidated borrowings and deferred payments of the Infrastructure Investment Trust (“InvIT”), holding company and the SPV(s), exceed twenty five per cent of the value of the InvIT assets, for any further borrowing above forty nine percent, SEBI can determine purposes, other than for acquisition or development of infrastructure projects as already allowed, for which such funds can be utilized.
The provisions of the InvIT Amendment Regulations have come into force on 17.04.2026.
Footnote
1 SEBI (Infrastructure Investment Trusts) (Amendment) Regulations, 2026
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