TaxTMI 
TaxTMI 
Framework for Calculation of Net Distributable Cash Flows for InvITs
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....NDCF for SPV/Holdco and InvIT". 2. SEBI is in receipt of request from industry association to review the aforementioned framework for computation of NDCF, to allow addition of debt funded major maintenance expenses for the purpose of calculation of NDCF. Based on the same and recommendations of the Hybrid Securities Advisory Committee ("HySAC") and public consultation pursuant to the same, the following changes are made in Section F (Para 3.19) titled "Framework for calculation of Net Distributable Cash Flows (NDCFs)" of Chapter 3 of Master Circular for InvITs: 2.1. Under Para 3.19 of Chapter 3 of Master Circular for Infrastructure Investment Trusts dated July 11, 2025, in Table S.No. (I.) titled 'Computation of Net Distributable Cash....
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....ngly, the framework for computation of NDCF at Trust level as provided in the Master circular shall change as follows (insertion highlighted in red color): (II.) Computation of Net Distributable Cash Flow at Trust level: Particulars Cashflows from operating activities of the Trust Particulars (+).. (+).. (+) Proceeds from sale of infrastructure investments, infrastructure assets or sale of shares of SPVs/Hold Co or Investment Entity not distributed pursuant to an earlier plan to re-invest as per Regulation 18(7) of InvIT Regulations or any other relevant provisions of the InvIT Regulations, if such proceeds are not intended to be invested subsequently......... (+) Payments made towards major maintenance expense for r....
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....cular for Infrastructure Investment Trusts dated July 11, 2025, in S. No. (III.) titled 'Notes/ Other Rules', following shall be added as Note No. 12 - (III.) Notes/Other Rules ............. 11.......... 12. Any payments made towards major maintenance expense for road projects to the extent funded by external debt shall be added back subject to the following conditions - (i) Road Project shall mean a project in the 'Roads and bridges' infrastructure sub-sector as mentioned in the notification of the Ministry of Finance dated September 19, 2025 and shall include any amendments or additions made thereto. (ii) Major maintenance expense shall mean expenditure incurred on maintenance of road ....
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....to use of borrowing for Major Maintenance expenses. The following disclaimer may be considered by the InvITs in this regard: " Major Maintenance Debt is similar to loan taken for capital expenditure, however Major Maintenance expense cannot be capitalized as per accounting principles. Major Maintenance debt shall form part of the aggregate borrowing of the InvIT and would result in reduction in the leverage head room available in future years to fund future growth. On the other hand, this will result in higher cash flow available for distribution or other uses since no cash is set aside for Major Maintenance." e. Present impact and Future impact on distribution to unitholders (Wherever applicable, the following shall be di....
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....be obtained certifying that the major maintenance expenses incurred are in line with the obligations and the requirements for major maintenance stated under the concession agreements and payments made for such Major Maintenance expenses are funded by external borrowings. The payment of major maintenance expenses which are funded by external borrowings, as certified by the statutory auditor of the InvIT will be allowed to be added back for the purpose of NDCF calculation. Further, statutory auditor may rely on independent expert for certifying that the major maintenance expenses incurred are in line with the obligations and the requirements for major maintenance stated under the concession agreements. (vii) Disclosure of th....