e  rit    ar et in ndia     14.33
         (i) It can invest in infrastructure projects,     infrastructure projects can raise funds only through
             either directly or through an SPV (Specila    private placement from qualified institutional
             Purpose vehicle). In case of public-          buyers with a minimum investment and trading
             private-partnership (PPP) projects, such      lot of Rs.1 crore and from at least five investors,
             investments will be only through an SPV.      where single holding cannot be more than 25 per
        (ii) While listing, the collective holding of      cent.
             sponsors of an InvIT has to be at least 25    Recent developments: To promote the real
             per cent for at least three years.            estate and infrastructure trusts, a friendlier tax
       (iii) Required to have a holding worth at least     regime was put in place by the GoI through two
             Rs.500 crore in the underlying assets, and    successive Union Budgets, 2014–15 and 2015–16.
             the initial offer size of the InvIT has to be However, the idea of the trusts could not get much
             at least Rs.250 crore.                        momentum. Basically, due to subdued market
       (iv) Any InvIT, which looks to invest at least      conditions in the sectors attracting investors—
             80 per cent of its assets in completed and    new (greenfield) project or a trust—has remained
             revenue generating infrastructure assets,     difficult by now. Majority of the existing projects
             has to raise funds only through a public      in the sectors are running into losses with weak
             issue of units, with a minimum 25 per         balance sheets of their developers, unable to even
             cent public float and at least 20 investors.  service their bank loans.
        (v) The minimum subscription size and                   To push the cause of the trusts, by mid-
             trading lot of such a listed InvIT has to     March, 2016, the security market regulator,
             be Rs.10 lakh and Rs.5 lakh, respectively.    SEBI, permitted the foreign portfolio investment
             A publicly offered InvIT may invest           (FPI) in the trusts. How much interest the FPIs
             the remaining 20 per cent in under-           will show in the trusts it will be known only
             construction infrastructure projects and      in future, meanwhile, experts believe that real
             other permissible investments.                momentum in the sectors can be only expected
         An InvIT that proposes to invest more than        once the macro-economic conditions improve in
     10 per cent of its assets in under-construction       the economy.