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SEBI Proposes Relaxations for InvITs and REITs: Key Changes

6 February 20261 min read
BANKING & FINANCESEBI ProposesRelaxations forInvITs and REITs:Key Changes6 February 2026safalsetu.com

Why in the news

The market regulator floated limited relaxations for infrastructure and real estate trusts, aimed at better cash handling, borrowing room and treatment of assets after a concession ends.

Key facts

  • SPV rule today: an SPV must hold at least 90% of its assets in infrastructure projects.
  • Proposal 1: let InvITs keep such SPVs past concession expiry.
  • Proposal 2: widen the list of liquid mutual fund schemes for parking surplus cash (InvITs and REITs).
  • Proposal 3: equal greenfield conditions for private and listed InvITs.

Rationale

  • After a concession, InvITs still deal with tax assessments, litigation, defect-liability duties and contractual obligations.
  • Reforms keep investor protection norms in place.

Exam angle

  • Regulator: SEBI (consultation paper stage).
  • Full forms: InvIT, REIT, SPV.
  • SPV threshold: 90% of assets in infrastructure projects.

Test yourself

1. Under existing norms, what share of assets must an InvIT's SPV hold in infrastructure projects?

The notes cite a minimum of 90% of assets.

2. SEBI proposed that InvITs may continue holding SPVs after which event, despite temporary non-compliance?

Post-concession holding is the first proposal.

3. SEBI proposed aligning greenfield investment conditions of private InvITs with which category?

Private InvITs currently face tighter limits than listed ones.

This topic is part of Daily Current Affairs 5 & 6 February 2026 (28 topics).

All topics of the dayDay quizFebruary 2026

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