The Securities and Exchange Board of India has eased borrowing rules for Infrastructure Investment Trusts, or InvITs, with leverage exceeding 49% of asset value, widening the scope for infrastructure financing and project expansion.
In a circular issued on Friday, SEBI said InvITs will now be allowed to use fresh borrowings above the 49% leverage limit for capital expenditure aimed at enhancing asset performance or augmenting capacity.
The regulator has also permitted the use of additional debt for major maintenance expenses related to road projects. According to SEBI, such expenses would cover non-routine maintenance obligations specified under concession agreements.
“Major maintenance expense shall mean expenditure incurred on maintenance of road project which is not routine maintenance and is in accordance with the obligations and requirements specified in the concession agreement,” the regulator said in its circular.
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The relaxation is expected to improve funding access for road-focused InvITs undertaking large-scale repair and maintenance works.
SEBI has further allowed refinancing of existing debt by InvITs, special purpose vehicles and holding companies, subject to conditions. The regulator clarified that only the principal portion of the original debt can be refinanced and the earlier borrowing must have been used for purposes already permitted under InvIT regulations.
“Only the principal portion of debt is refinanced i.e. any accumulated interest or any charges or fees by whatever name called shall not be refinanced,” SEBI said.
The new norms come after amendments made to Regulation 20(3)(b)(ii) of the SEBI InvIT Regulations on April 17, 2026, expanding the permissible use of borrowings above the leverage threshold.
The circular comes into effect immediately, SEBI said.
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