Infrastructure Investment Trust (InvITs) – UPSC Prelims

Infrastructure Investment Trust:
  • An Infrastructure Investment Trust (InvITs) is like a mutual fund, which enables direct investment of small amounts of money from possible individual/ institutional investors in infrastructure to earn a small portion of the income as return.
  • InvITs can be treated as the modified version of REITs designed to suit the specific circumstances of the infrastructure sector.
  • InvITs can be established as a trust and registered with Sebi.
  • An InvIT consists of four elements: 1) Trustee, 2) Sponsor(s), 3) Investment Manager and 4) Project Manager.
  • Regulated by: InvITs are regulated by the Securities and Exchange Board of India (SEBI) (Infrastructure Investment Trusts) Regulations, 2014.
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