sachinnagpal.in · Cheat sheet
InvIT in one page
Structure, parties, SEBI limits, distributions, tax components and key ratios. · As of 25 October 2026
What it is
A SEBI-registered trust that owns operating infrastructure (such as toll roads) through SPVs and passes most of the cash to unitholders. Rules: SEBI (InvIT) Regulations, 2014.
The four parties
| Party | Role |
|---|---|
| Sponsor | Sets up the trust and transfers the first assets |
| Trustee | Holds assets for unitholders; oversees the manager |
| Investment manager | Decides, discloses, declares distributions |
| Project manager | Runs the assets day to day |
Key SEBI numbers
- Distribute at least 90% of NDCF
- Public InvIT: distribute at least every six months
- Borrowing: up to 25% freely; 25 to 49% with rating and unitholder approval; 49 to 70% with AAA, six distributions and 75% approval
- Public InvIT: at least 80% of value in completed, revenue-generating assets
Distribution components and tax (unitholder)
| Component | Tax |
|---|---|
| Interest | Taxable at slab, TDS |
| Dividend | Generally exempt from 1 Apr 2026 |
| Repayment of debt | Reduces cost of units |
| Units sold after 12 months | 12.5% above ₹1.25 lakh a year |
Ratios to know
- Distribution yield = DPU ÷ price (not the same as return)
- IRR: counts price paid, every distribution and the end value
- Net debt ÷ asset value (the SEBI borrowing test)
- DSCR at SPV level, and years left on each concession
Remember
A road concession ends. Part of every distribution can be your own capital coming back.