The Securities and Exchange Board of India (SEBI) has given an in-principle approval for the registration of the Raajmarg Infra Investment Trust (RIIT) as a Public Infrastructure Investment Trust. This marks an important milestone for the National Highways Authority of India (NHAI) as it looks to expand its asset monetisation strategy and tap into a wider pool of investors. Advertisement

A public InvIT allows individuals and institutions to invest in infrastructure projects in a manner similar to a mutual fund, but instead of equities, the investments are linked to revenue-generating assets such as toll roads. The toll income from these highways is then distributed to investors as returns. SEBI’s approval means NHAI can begin preparing RIIT to eventually raise money from the public.

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