SEBI Expands Permitted End-Use Of InvIT Borrowings Where Net Borrowings Exceed 49% of Asset Value

The Securities and Exchange Board of India (SEBI) on Friday expanded the permissible use of borrowings by Infrastructure Investment Trusts (InvITs) where net borrowings exceed 49% of the value of InvIT assets.

SEBI said Regulation 20(3)(b)(ii) of the SEBI (Infrastructure Investment Trusts) Regulations, 2014 was amended on April 17, 2026 to expand the permissible use of such borrowings.

Under the circular, borrowings above the 49% limit may now be utilised for capital expenditure undertaken to enhance asset performance or augment capacity.

SEBI has also permitted the use of such borrowings for major maintenance expenses in respect of road projects. The circular clarifies that “major maintenance expense” means expenditure incurred on maintenance of a road project that is not routine maintenance and is in accordance with obligations and requirements specified in the concession agreement.

Further, the circular permits refinancing of debt by the InvIT, special purpose vehicle (SPV) or holding company (Holdco), subject to conditions. SEBI clarified that only debt originally raised for purposes permitted under the InvIT Regulations can be refinanced, and only the principal amount may be refinanced, excluding accumulated interest, charges or fees.

The circular also defines “road project” as a project in the 'Roads and bridges' infrastructure sub-sector as specified in the Ministry of Finance notification dated September 19, 2025, including any amendments or additions.

The circular comes into force with immediate effect.