Infrastructure Investment Trusts (InvIT)

Subject: Economy

Context: The railways officials are looking at InvIT after its role in road and power sector as it has been seeking to attract private investment

Concept:

It is a Collective Investment Scheme similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return
it is a tiered structure with Sponsor setting up the InvIT which in turn invests into the eligible infrastructure projects either directly or via special purpose vehicles (SPVs).
It is regulated by the SEBI (Infrastructure Investment Trusts) Regulations, 2014