Amended InvIT and REIT regulations to widen investor base: ICRA

01 Apr 2019 Editorial Team

The first amendment pertains to reduction of the minimum allotment lot for publicly issued InvITs from Rs 1 million to Rs 0.1 million, and for publicly issued REITs from Rs 0.2 million to Rs 50,000. Similarly, the minimum trading lot for InvITs is reduced from Rs 0.5 million to Rs 0.1 million, and for REITs from Rs 0.1 million to Rs 50,000. This is expected to increase the reach of retail investors in such instruments. Current investment avenues for retail investors in income-generating infrastructure and real-estate projects are limited owing to high minimum investment requirements for alternate investment funds (AIFs) and other pooled funds. Listed InvITs and REITs can be a transparent and stable investment option for retail investors because of the various regulatory stipulations.

The other key amendment is the increase in leverage limit for InvITs from the earlier 49 per cent of the InvIT’s assets to 70 per cent. This is subject to additional disclosure and compliance requirements, which include a minimum track record of six distributions on a continuous basis, and a credit rating of AAA or equivalent for the consolidated debt.

According to Shubham Jain, Vice-President and Group Head, Corporate Ratings, ICRA, “The high credit ratings of InvITs also factored in the earlier regulatory cap of 49 per cent on the extent of leverage, which can be undertaken by an InvIT. Now, with the increase in permitted leverage, that comfort will reduce. Nevertheless, the additional compliance requirements of maintenance of AAA rating and distribution track record does provide some comfort.”

At 70 per cent leverage, the total debt to net-worth ratio will increase to 2.33 times compared to 0.96 times at 49 per cent leverage levels. With higher leverage, the debt-service coverage ratio (DSCR), a key ratio to measure credit-worthiness, would also be significantly lower, assuming other things remain the same.

Further, SEBI has introduced a separate framework for privately placed unlisted InvITs, which limits the minimum investment by an investor at Rs 10 million, while leaving the number of investors, leverage and type of underlying assets at the discretion of the issuer and InvIT. After this amendment, private InvITs will be able to increase leverage, and take up more projects under construction depending on the investor’s risk appetite.

Recent amendments made to the regulations of infrastructure investment trusts (InvITs) and real-estate investment trusts (REITs) by the Securities and Exchange Board of India (SEBI) are likely to enable increased penetration of these financial instruments, according to a note by ICRA. The first amendment pertains to reduction of the minimum allotment lot for publicly issued InvITs from Rs 1 million to Rs 0.1 million, and for publicly issued REITs from Rs 0.2 million to Rs 50,000. Similarly, the minimum trading lot for InvITs is reduced from Rs 0.5 million to Rs 0.1 million, and for REITs from Rs 0.1 million to Rs 50,000. This is expected to increase the reach of retail investors in such instruments. Current investment avenues for retail investors in income-generating infrastructure and real-estate projects are limited owing to high minimum investment requirements for alternate investment funds (AIFs) and other pooled funds. Listed InvITs and REITs can be a transparent and stable investment option for retail investors because of the various regulatory stipulations.The other key amendment is the increase in leverage limit for InvITs from the earlier 49 per cent of the InvIT’s assets to 70 per cent. This is subject to additional disclosure and compliance requirements, which include a minimum track record of six distributions on a continuous basis, and a credit rating of AAA or equivalent for the consolidated debt.According to Shubham Jain, Vice-President and Group Head, Corporate Ratings, ICRA, “The high credit ratings of InvITs also factored in the earlier regulatory cap of 49 per cent on the extent of leverage, which can be undertaken by an InvIT. Now, with the increase in permitted leverage, that comfort will reduce. Nevertheless, the additional compliance requirements of maintenance of AAA rating and distribution track record does provide some comfort.”At 70 per cent leverage, the total debt to net-worth ratio will increase to 2.33 times compared to 0.96 times at 49 per cent leverage levels. With higher leverage, the debt-service coverage ratio (DSCR), a key ratio to measure credit-worthiness, would also be significantly lower, assuming other things remain the same.Further, SEBI has introduced a separate framework for privately placed unlisted InvITs, which limits the minimum investment by an investor at Rs 10 million, while leaving the number of investors, leverage and type of underlying assets at the discretion of the issuer and InvIT. After this amendment, private InvITs will be able to increase leverage, and take up more projects under construction depending on the investor’s risk appetite.

Real Estate

08 May 2026

Integrated Waterproofing Strategies

Waterproofing buildings used to be an annual pre-monsoon affair but the evolution of real-estate development has changed that approach. In new developments, developers are weaving waterproofing solutions into both the design and construction phases, an approach that Nikhil Madan, Managing Director, Mahima Group, says, “is all about ensuring lasting durability [of the building] and keeping lifecycle risks including water seepage and extensive maintenance to a minimum.”Watertight by designAluminium formwork systems aren’t commonly thought of as a waterproofing tool but at the Mahima Group,..

Infrastructure Urban

08 May 2026

GROHE Showcases Water-Led Design At Milan

GROHE unveiled its GROHE SPA Aqua Sanctuary at Milan Design Week 2026, transforming Piccolo Teatro Studio Melato into an immersive showcase of water, design and wellbeing. Built on the philosophy of ‘Wellbeing Through Water’, the installation reimagined bathrooms as holistic spaces for relaxation, rejuvenation and self-care.The Aqua Sanctuary was presented through three interconnected sanctums. The first showcased the 3D-printed GROHE SPA AquaTree shower and faucet, highlighting bespoke innovation and biophilic design. The second featured the Atrio Private Collection and GROHE SPA x Buster..

Infrastructure Transport

08 May 2026

Rahee Group Expands Rail Manufacturing Capacity

Rahee Group has outlined a multi-year investment roadmap to expand its operational footprint and strengthen manufacturing capabilities for India’s growing railway and urban transit sector. The Group is expanding in Odisha with a new Track Component Casting Unit, for which the groundbreaking ceremony was held on 8 April 2026 in the presence of Odisha Chief Minister Mohan Charan Majhi.The Group’s flagship EPC arm, Rahee Infratech Ltd, continues to focus on complex rail infrastructure projects, including track systems, bridges, viaducts and ballastless infrastructure. Its wholly owned subsidi..