SEBI Grants In-Principle Approval to Raajmarg Infra Investment Trust (RIIT)

The Securities and Exchange Board of India (SEBI) has granted in-principle approval for the registration of Raajmarg Infra Investment Trust (RIIT) as an Infrastructure Investment Trust (InvIT) under the SEBI (Infrastructure Investment Trusts) Regulations, 2014. The move is expected to unlock the monetisation potential of India’s national highway assets while offering a long-term investment avenue, especially for retail and domestic investors.

As part of securing final registration, RIIT must fulfil several regulatory conditions within the next six months, including appointment of directors, submission of financial statements, and meeting all compliance requirements.

Key Highlights

• RIIT’s Objective:
  To monetise National Highway assets and create a stable, high-quality investment instrument for retail and institutional investors.
• RIIMPL as Investment Manager:
  In November 2025, NHAI incorporated Raajmarg Infra Investment Managers Pvt. Ltd. (RIIMPL) as the Investment Manager for RIIT.
  RIIMPL is a collaborative venture with equity participation from major banks and financial institutions.
• Tiered InvIT Structure:
  • Sponsor sets up the InvIT.
  • The InvIT then invests in eligible infrastructure projects directly or through Special Purpose Vehicles (SPVs).
• Regulatory Framework:
  InvITs operate under SEBI (Infrastructure Investment Trusts) Regulations, 2014, ensuring transparency and investor protection.

Benefits for Investors

• Regular Income Stream:
  InvITs typically distribute most earnings as dividends, offering predictable income.
• Potential for Capital Appreciation:
  If underlying assets gain value, investors can sell their InvIT units at a profit.
• Low Investment Threshold:
  Investors can participate with relatively small amounts.
• Liquidity Through Stock Exchanges:
  Listed units ensure reasonable liquidity, enabling easy entry and exit for investors.