ForumIAS LATEST
Source: Business Standard- SFG FRC 2027 | Program starts from 19th Dec. 2026 | Admissions open for Entrance Test Click Here to know more →
- Prelims Test Series (PTS) for Prelims 2027 starts 11th Oct. 2026 Click Here to know more →
- [Pre-order] Ethics Redbook 3rd Edition: Delivery starts from 10th October onwards Click Here to Read More →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 11th Oct. Click Here to Read More →
What is the News?
National Highways Authority of India(NHAI) has started re-engagement with investors for its infrastructure investment trust(InvIT) which has been delayed by over a year.
What are Infrastructure Investment Trusts(InvITs)?
- InvITs are instruments that work like mutual funds. They are designed to pool small sums of money from a number of investors to invest in infrastructure assets that give cash returns over a period of time.
- Part of this cash flow would be distributed as a dividend back to investors.
- Regulated by: InvITs are regulated by the Securities and Exchange Board of India (SEBI) (Infrastructure Investment Trusts) Regulations, 2014.
NHAI InvITs:
- NHAI is planning to set up a private listed InvIT to attract large institutional investors.
- Under the trusts, NHAI will offer 19 projects worth Rs 35,000 crore. The initial projects selected for the InvIT will provide better prospects because they are part of national corridors.
- Moreover, NHAI INvIT would also see an offer for sale(OFS). The units are proposed to be listed on the National Stock Exchange and the BSE.
- Offer for Sale(OFS) is when the promoters (owner) of a listed company sell their shares to the public. It is a transparent process that takes place on the stock exchange.
