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

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India’s push to secure sustainable funding for its rapidly expanding road network has taken a major turn with the Securities and Exchange Board of India (SEBI) granting preliminary approval to the Raajmarg Infra Investment Trust (RIIT). The trust, created by the National Highways Authority of India (NHAI), is expected to operate as a public InvIT, allowing citizens to invest directly in revenue-generating highway stretches.

Why RIIT Matters in India’s Infrastructure Landscape

RIIT introduces a new route for channeling public savings into operational road assets. Its purpose goes beyond mere fundraising
it aims to shift infrastructure financing from government-heavy spending to a broader investor-driven model.

Through RIIT, NHAI intends to:

• Convert completed highways into investible assets

• Offer small and large investors a regulated path to earn steady returns

• Build a predictable, long-term pool of capital

• Reduce dependency on loans or budgetary allocation

Because InvITs are governed by SEBI, they operate with strict transparency and well-defined reporting rules, making them suitable for long-term income seekers.

Conditions RIIT Must Meet Before Final Approval

The approval received so far is only the first step. RIIT will be granted full registration only after completing key requirements such as:

• Appointing an independent board

• Filing all supporting legal and financial documents

• Meeting disclosure, audit, and governance mandates

• Identifying the highways that will form the initial asset bundle

SEBI has set a six-month timeline to complete these tasks.

NHAI’s Past Success With Monetization Models

NHAI has already experimented with multiple strategies to unlock value from its road assets. Its efforts have delivered significant results:

• The Toll-Operate-Transfer (TOT) programme has generated Rs 48,995 crore

• Private InvIT rounds have mobilized Rs 43,638 crore from domestic and overseas investors

These outcomes reflect the readiness of the market to invest in infrastructure-backed financial products. RIIT is designed to extend this opportunity to the wider public.

What InvITs Offer Investors

An Infrastructure Investment Trust is a mechanism that pools money to invest in operational infrastructure. For investors, InvITs generally provide:

• Cash flow–linked earnings (e.g., highway toll revenue)

• Professional management

• Transparent regulation under SEBI

• Stable returns suitable for long-term investors such as retirees and pension funds

RIIT brings this structure to a much broader investor base by functioning as a public InvIT.

In Summary

• SEBI has issued an in-principle approval for NHAI’s Raajmarg Infra Investment Trust (RIIT).

• RIIT will allow public participation in income-generating national highways.

• RIIMPL, backed by leading Indian financial institutions, will oversee the trust’s investment operations.

• Full approval requires completion of regulatory tasks within six months.

• NHAI has already raised over Rs 92,000 crore through TOT and private InvIT models, laying the foundation for RIIT’s launch.

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