SEBI proposed amendments to the framework for calculating Net Distributable Cash Flows (NDCF) for InvITs, incorporating enhanced safeguards and unitholder approval.
Review of NDCF Framework for InvITs
Following requests from the Bharat InvITs Association, the Securities and Exchange Board of India (SEBI) has proposed revisions to the framework for calculating Net Distributable Cash Flows (NDCF) for Infrastructure Investment Trusts (InvITs). Key features of the proposed amendments include introducing safeguards such as the requirement for unitholder approval and improved disclosure practices.
The intent behind these changes is to enhance transparency and protect the interests of unitholders while ensuring that the NDCF calculation process is systematically regulated. These adjustments aim to align the framework with best practices observed in similar financial instruments.
Practitioners must prepare for these potential changes as they may impact compliance and reporting obligations for InvITs. Ensuring adequate systems to accommodate the revised calculations and secure unitholder engagement will be crucial moving forward.
Citations
- SEBI Consultation Paper No. InvIT/2026/01
