What is an InvIT? Infrastructure trusts explained
What is an InvIT? An infrastructure investment trust is a listed vehicle that pools investor money to own operating infrastructure, such as toll roads or power transmission lines, and passes most of the cash those assets generate back to unitholders. An InvIT gives exposure to long-life, cash-generating infrastructure through an exchange-traded unit, without owning the physical asset directly. This guide explains what an InvIT is, how India's rules define it, and what it discloses. It is not investment advice.
Definition
An InvIT (infrastructure investment trust)
is a SEBI-regulated, listed trust that owns operating infrastructure and must hold at least 80 percent of its assets in completed, revenue-generating projects while distributing at least 90 percent of its net distributable cash flow to unitholders. Source: SEBI InvIT Regulations, 2014.
How does an InvIT work?
An InvIT raises capital from unitholders and uses it to hold infrastructure assets, typically through special purpose vehicles. Those assets earn revenue: toll collections on a road, tariffs on a transmission line, fees on a pipeline. The InvIT collects that income, meets its costs, and distributes most of what remains to unitholders. The units are listed, so their market price moves independently of the assessed value of the underlying assets.
The rules come from the SEBI (Infrastructure Investment Trusts) Regulations, 2014, which define what an InvIT can own, how much it must pay out, and what it must report.
What must an InvIT own and distribute?
The structure mirrors a REIT. At least 80 percent of the value of an InvIT's assets must be in completed and revenue-generating infrastructure projects, with the remainder in permitted under-construction or other assets. On distributions, an InvIT must pay unitholders at least 90 percent of its net distributable cash flow, at least once every six months. SEBI standardised the framework for computing net distributable cash flow for REITs and InvITs, effective 1 April 2024.
80%
Minimum share of InvIT assets that must be completed, revenue-generating infrastructure
Source: SEBI InvIT Regulations, 2014
What does an InvIT disclose?
A publicly listed InvIT files financial results, details of the projects it holds and their valuation, and the distributions it declares. This is the primary-source record that lets an investor see what the trust owns and what it pays, from filings rather than from promotion.
How is an InvIT different from a REIT?
The vehicles are structurally the same; the difference is the asset class. A REIT owns income-generating real estate. An InvIT owns operating infrastructure. Both carry the 80 percent completed-asset floor and the 90 percent payout rule. For the full side-by-side, read REIT vs InvIT.
InvITs sit alongside other listed, disclosure-driven instruments such as NCDs in Indian markets. Flock reports these public filings with each claim sourced and dated. What any of it means for your money is your call to make.
Frequently asked questions
What does an InvIT invest in?
An InvIT holds infrastructure assets such as toll roads, power transmission lines, gas pipelines, or telecom towers. Under SEBI rules, at least 80 percent of its assets must be in completed and revenue-generating infrastructure projects. Source: SEBI InvIT Regulations, 2014.
How much does an InvIT distribute?
An InvIT must distribute at least 90 percent of its net distributable cash flow to unitholders, at least once every six months. The high mandatory payout is central to how the vehicle works. Source: SEBI InvIT Regulations, 2014.
What is the difference between a REIT and an InvIT?
Both are SEBI-regulated listed trusts with the same 80 percent completed-asset and 90 percent distribution rules. A REIT owns income-generating real estate; an InvIT owns operating infrastructure such as roads or transmission lines. Source: SEBI REIT and InvIT Regulations, 2014.
Are InvITs listed and regulated?
Publicly offered InvITs list and trade on the stock exchanges and are governed by the SEBI (Infrastructure Investment Trusts) Regulations, 2014, which set asset, distribution, and disclosure requirements. Private InvITs are placed with select investors. Source: SEBI InvIT Regulations, 2014.
Flock tracks these filings, sourced, dated, and linked back to the original. See what smart-money entities disclosed, without the guesswork about what it means.
Disclosures shown are public regulatory filings. Data may be delayed or incomplete. Smart-money entities may no longer hold positions shown. Not investment advice.