National Highways Infra Trust (NHAI InvIT):
According to the Union Minister for Road Transport and Highways, National Highways Infra Trust (NHAI InvIT) is looking to raise additional ₹3,800 crore and around Rs 1,500 crore were being garnered through an issue of non-convertible debentures (NCDs) with a long-dated maturity of 24 years.
- These InvIT bonds will be listed on BSE and NSE, providing an opportunity for investors to invest and trade.
- NHAI InvIT is the infrastructure investment trust sponsored by the National Highways Authority of India (NHAI) to support the government’s National Monetisation Pipeline (NMP).
- NHAI’s InvIT is a Trust established by NHAI under the Indian Trusts Act, 1882 and SEBI (Security and Exchange Board of India) regulations.
- The Union Cabinet chaired by Prime Minister Narendra Modi had approved the NHAI’s Infrastructure Investment Trust (InvIT) in December 2019.
- Infrastructure investment trusts are institutions similar to mutual funds, which pool investments from various categories of investors and invest them into completed and revenue-generating infrastructure projects, thereby creating returns for the investor.
- The capital market regulator notified the SEBI (Infrastructure Investment Trusts) Regulations, 2014 on September 26, 2014, and these trusts are likely to help facilitate investment in the infrastructure sector.
- Structured like mutual funds, they have a trustee, sponsor(s), 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.