Invits

• The Centre is working on a proposal to launch a fresh InvIT for national highways, where domestic retail investors can hold units of the trust.

ABOUT INFRASTRUCTURE INVESTMENT TRUST (INVIT)

• INVITS are market traded investments regulated by Securities and Exchange Board of India.
• It is Collective Investment Scheme similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects.
• InvITs are recognized as borrowers under (SARFAESI) ‘Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002’
• Any dividend or interest income that one can get from an InvIT is completely taxable as per their Income Tax Slab rate.
• An InvIT has 4 parties namely; Trustee, Sponsor(s) and Investment Manager and Project Manager.
• While the trustee (certified by SEBI) has the responsibility of inspecting the performance of an InvIT, sponsor(s) are promoters of the company that set up the InvIT.