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SEBI lets highly leveraged InvITs borrow for capex maintenance and refinancing under new rules
India
Published on 15 May 2026
Borrowings can now fund major non routine road upkeep
SEBI has widened the permitted use of fresh borrowings for Infrastructure Investment Trusts (InvITs) with net debt above 49% of asset value, effective immediately. The regulator now allows such funds for capital expenditure to improve performance or expand capacity, and also for major maintenance costs on road projects, defined as non routine expenses tied to concession obligations. SEBI further permits refinancing by the InvIT, SPV, or holding company, but only the principal can be refinanced—interest and fees cannot.
- Applies to InvITs with net debt over 49% of asset value
- Fresh borrowings can be used for capex and capacity augmentation
- Major road maintenance is now eligible for funding
- Refinancing allowed for InvIT SPV or Holdco with strict conditions
- Only principal may be refinanced; accrued interest and fees excluded
- SPV status can continue after concession end with a one year exit or replacement
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times