NHAI’s Raajmarg Infra InvIT Gets SEBI’s In-Principle Approval for Public Listing

India’s infrastructure development strategy took a major leap forward with the Securities and Exchange Board of India (SEBI) granting in-principle approval to the Raajmarg Infra Investment Trust (RIIT). Promoted by the National Highways Authority of India (NHAI), this trust is poised to become a Public Infrastructure Investment Trust (InvIT), allowing ordinary investors to directly participate in the nation’s highway infrastructure growth.

What Is RIIT and Why It’s Significant

Raajmarg Infra Investment Trust (RIIT) is designed as a public InvIT that will channel investor capital into high-quality national highway projects. With this new framework, NHAI aims to,

• Monetize completed highway assets
• Provide investment opportunities to retail and domestic institutional investors
• Ensure long-term infrastructure funding through transparent and regulated mechanisms
• Diversify funding sources beyond traditional government or debt-based channels

Public InvITs are listed instruments governed under SEBI regulations, designed to offer steady returns from operational infrastructure assets.

Next Steps Towards Full Registration

Although the in-principle approval is a crucial milestone, RIIT must fulfill several requirements within six months to receive full SEBI registration,

• Appointment of independent directors
• Submission of financial and legal documents
• Compliance with reporting and governance standards
• Finalization of the initial asset pool to be monetized under the trust

These steps ensure that RIIT aligns fully with SEBI’s robust framework, enhancing investor confidence and market credibility.

NHAI’s Track Record in Monetization

NHAI has been at the forefront of infrastructure monetization in India, with significant achievements in recent years,

• ₹48,995 crore raised through the Toll-Operate-Transfer (TOT) model
• ₹43,638 crore mobilized via four rounds of private InvITs, attracting both domestic and international investors
• These successful models laid the groundwork for public InvITs, such as RIIT, to expand investor participation and bring highway infrastructure into mainstream investment portfolios.

Static Overview: What Is an InvIT?

An Infrastructure Investment Trust (InvIT) is a SEBI-regulated investment vehicle that allows public or private investors to invest in income-generating infrastructure assets.

Key features of an InvIT,

• Returns are generated from operational revenues, such as highway tolls
• InvITs are managed by a professional investment manager
• Designed for stable long-term income, especially suitable for retail and pension investors
• Encourages public-private participation in infrastructure funding

With RIIT, India is expanding this model from institutional investors to the wider public market.

Key Takeaways

• SEBI has granted in-principle approval to NHAI’s Raajmarg Infra Investment Trust (RIIT) as a Public InvIT.
• RIIT will monetize national highway assets and allow public investment in infrastructure development.
• A new entity, RIIMPL, has been created as the investment manager, backed by India’s top banks and financial institutions.
• RIIT must complete all regulatory and operational formalities within six months for final SEBI registration.
• NHAI has already raised over ₹92,000 crore through TOT and private InvITs.