SEBI approves Raajmarg InvIT, opening highways to public investment
SEBI approves Raajmarg InvIT, opening highways to public investment
SEBI grants in-principle registration for Raajmarg Infra Investment Trust, enabling NHAI's highway assets to draw public investment and accelerate asset monetisation.
SEBI has given in-principle approval for the registration of the Raajmarg Infra Investment Trust RIIT as a Public Infrastructure Investment Trust. This marks a milestone for the National Highways Authority of India as it expands its asset monetisation strategy and taps a wider pool of investors. A public InvIT allows individuals and institutions to invest in infrastructure projects in a manner similar to a mutual fund, but the investments are linked to revenue-generating assets such as toll roads. The toll income from these highways is then distributed to investors as returns. SEBI's approval means NHAI can begin preparing RIIT to eventually raise money from the public. Over the next six months, RIIT will need to complete several regulatory steps before it receives final approval. These include appointing directors, submitting financial statements, and meeting the compliance requirements set by SEBI. To run the InvIT, NHAI recently set up Raajmarg Infra Investment Managers Pvt. Ltd. RIIMPL has equity participation from major banks and financial institutions including SBI, PNB, NaBFID, HDFC Bank, ICICI Bank, Axis Bank, Bajaj Finserv Ventures, IDBI Bank, IndusInd Bank and Yes Bank. The involvement of these lenders indicates strong market backing for the InvIT's structure. NHAI has been increasingly using asset monetisation to raise funds for new highway development. So far, it has monetised assets worth 48,995 crore through the Toll Operate Transfer model and raised 43,638 crore through four rounds of private InvITs. Moving to a Public InvIT format is expected to expand this momentum by opening up participation to retail investors. What it means SEBI's approval gives NHAI the green light to bring highway assets into a transparent, regulated investment platform that retail investors can access. It shifts the investing model toward a transparent, regulated platform accessible to retail investors.
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