Following feedback from stakeholders, SEBI proposes amendments to Net Distributable Cash Flows (NDCF) rules for InvITs, including unitholder approval measures and enhanced disclosures.
SEBI Proposes Amendments to NDCF Calculation Rules for InvITs
SEBI has proposed significant amendments to the rules governing the calculation of Net Distributable Cash Flows (NDCF) for Infrastructure Investment Trusts (InvITs), following extensive representations from the Bharat InvITs Association. The draft amendments include provisions for obtaining unitholder approval and enhancing disclosure requirements, aimed at fostering transparency and accountability in InvIT operations.
The proposed changes seek to address stakeholder concerns and contribute to a more robust regulatory framework that encourages investor confidence. Incorporating unitholder approval in critical decisions reflects a more democratic approach to governance within InvITs.
For legal practitioners, these proposed amendments will necessitate advising clients on compliance with new requirements, emphasizing the importance of transparency and investor participation in governance decisions moving forward. Stakeholders should stay informed of these developments to prepare for eventual implementation.
Citations
- SEBI Proposal (2026) NDCF
