‘InVIT Security Structures in India: Hurdles, and Workarounds’

Partner Varun Chauhan has recently authored an insightful article titled, ‘InvIT Security Structures in India: Hurdles, and Workarounds’.

India’s Infrastructure Investment Trust (InvIT) framework has emerged as a pivotal instrument in the country’s infrastructure financing ecosystem, bridging long-term capital with stabilized operating assets. As InvITs mature, their capital structures increasingly rely not only on equity but also on sophisticated debt solutions that align regulatory compliance with creditor protection.

This article provides an overview of how InvIT-level financing is structured in India, examining the legal and commercial architecture that governs security creation, cash flow control, and enforcement. It explains how lenders achieve the two core objectives of “control and cash” through layered documentation – combining share pledges, account charges, receivable assignments, and trustee-led enforcement, while preserving the integrity of SPV ring-fencing and concession frameworks. The discussion also contrasts InvIT-level and SPV-level security approaches, outlining why the prevailing market practice has settled on a pragmatic, regulator-aligned structure suited to India’s infrastructure landscape.

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