In a significant move to empower investors and promote good governance in India’s infrastructure investment ecosystem, the Securities and Exchange Board of India (SEBI) issued a new circular on June 12, 2025. This circular introduces an Investor Charter for Infrastructure Investment Trusts (InvITs), reinforcing SEBI’s long-term commitment to financial consumer protection, transparency, and inclusion.
Strengthening Investor Confidence in InvITs
Infrastructure Investment Trusts (InvITs) have become vital vehicles for channelling investments into India’s infrastructure sector. However, their increasing popularity and complexity demand a higher standard of regulatory oversight. SEBI’s latest circular builds on its previous frameworks (notably Circulars dated November 26 and December 16, 2021) and incorporates new developments, including the Online Dispute Resolution (ODR) platform and SCORES 2.0, SEBI’s enhanced grievance redressal system.
The new Investor Charter has been formulated in consultation with the Hybrid Securities Advisory Committee (HySAC) and aims to improve investor awareness, ensure standardized disclosures, and boost investor confidence.
Key Components of the Investor Charter
The Investor Charter for InvITs outlines a clear vision and mission—to create a transparent, reliable, and investor-friendly infrastructure investment environment in India. It lays down specific responsibilities for InvITs, including:
- Professional Management: Ensuring that infrastructure assets are managed efficiently to optimize returns.
- High Governance Standards: Promoting ethical conduct and transparent operations across all stakeholders.
- Regular Disclosures: Publishing periodic financial reports, portfolio updates, valuation reports, and key investor communications.
- Grievance Redressal: Establishing strong mechanisms to resolve investor issues promptly through digital tools like ODR and SCORES 2.0.
- Investor Awareness: Educating current and prospective investors through targeted outreach and awareness programs.
Responsibilities for InvITs and Stakeholders
SEBI has directed the Bharat InvIT Association (BIA) and all registered InvITs to:
- Disseminate the Investor Charter on their official websites and mobile applications.
- Display the Charter prominently in their offices.
- Share copies of the Charter with investors via email or postal communication.
- Periodically review and update the Charter in line with changes in regulations.
Furthermore, InvITs must now disclose data on investor complaints monthly on their websites by the 7th of each month, enhancing transparency around grievance redressal performance.
Effective Immediately
These measures have come into immediate effect, as per SEBI’s mandate under Section 11(1) of the SEBI Act, 1992. Recognized stock exchanges have also been instructed to disseminate the circular widely.
Final Thoughts
SEBI’s Investor Charter for InvITs marks another progressive step in aligning India’s infrastructure investment framework with global standards. By focusing on transparency, governance, and investor empowerment, SEBI continues to lay the groundwork for a robust and resilient capital market ecosystem. Investors, in turn, can now approach InvITs with enhanced confidence, knowing their rights are protected and their concerns are heard.
