SEBI vide circular dated December 06, 2023 (consolidated as part of Chapter 3 of Master Circular for Infrastructure Investment Trusts dated July 11, 2025) prescribed a standardized framework for calculation of Net Distributable Cash Flow (“NDCF‟) for InvITs which inter-alia prohibited using borrowed money for distributions to unitholders.
SEBI was in receipt of request from Bharat InvITs Association (BIA) regarding treatment of debt availed by InvITs for incurring major maintenance expenses of road projects while calculating the NDCF. Considering the request of industry association and in order to facilitate ease of doing business, it is proposed that payments made for the purpose of major maintenance (MM) expense for the Road Projects of InvITs to the extent funded by external debt will be allowed to be factored (added back) for the purpose the NDCF computation subject to the specified conditions.
Public comments are invited on the Draft Circular titled “Review of Framework for calculation of NDCF – Treatment of debt availed by InvIT for expenses incurred as major maintenance (For InvITs)”and should be submitted by latest by June 22, 2026
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