The Securities and Exchange Board of India (SEBI) on May 15, 2026, issued a circular regarding permitted use of fresh borrowings for InvITs where Net Borrowings exceed forty-nine percent of the value of InvIT assets.
The following has been stated:-
•The Securities and Exchange Board of India has clarified the permitted use of fresh borrowings by InvITs when net borrowings exceed 49% of the value of InvIT assets.
•Fresh borrowings above the limit can now be used for capital expenditure aimed at improving asset performance or expanding infrastructure capacity.
•For road projects, borrowings may also be used for major maintenance expenses that are non-routine and required under concession agreements.
•The circular further permits refinancing of existing debt by the InvIT, SPV, or Holdco, provided the original borrowing was for permitted purposes and only the principal amount is refinanced.
•The circular came into immediate effect, and stock exchanges have been directed to publish and disseminate its contents on their websites.
[Circular No.: SEBI/HO/DDHS/DDHS-PoD-2/ I/11700/2026]
