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INFRASTRUCTURE DEBT FUND SCHEMES

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“Infrastructure debt fund scheme” means a mutual fund scheme that invests primarily (minimum 90% of scheme assets) in the :

▪ Debt securities of securitized debt instrument of infrastructure companies or 
▪Infrastructure capital companies or 
▪Infrastructure projects or 
▪Special purpose vehicles 

Which are created for the purpose of facilitating or promoting investment in infrastructure, and other permissible assets in accordance with these regulations or bank loans in respect of completed and revenue generating projects of infrastructure companies or projects or special purpose vehicles. 

Eligibility criteria for launching infrastructure debt fund scheme:

(i) An existing mutual fund may launch an infrastructure debt fund schemes if it has an adequate number of key personnel having adequate experience in infrastructure sector. 

(ii) A certificate of registration may be granted to an applicant proposing to launch only Infrastructure debt fund scheme if the sponsor or Parent Company of the sponsor:

(a) has been carrying on activities or business in infrastructure financing sector for a period of not less than 5 years; 

(b) it must be a fit and proper person [Specified in Schedule II of SEBI (intermediaries) Regulations 2008] (Parent Company of Sponsor shall mean a company which holds at least 75% of paid up equity share capital of sponsor.) 

Conditions for Infrastructure debt fund schemes:

(i) Units of Infrastructure debt fund schemes shall be listed on a RSE, provided such units shall be listed only after being fully paid up. 

(ii) An infrastructure debt fund scheme shall have minimum five investors and no single investor shall hold more than 50% of net assets of the scheme. 

(iii) No infrastructure debt fund scheme shall accept any investment from any investor which is less than Rs. 1 crore. 

(iv) The minimum size of the unit shall be Rs. 10 Lakhs. 

(v) Each scheme launched as infrastructure debt fund scheme shall have firm commitment from the Strategic investors for contribution of an amount of at least Rs. 25 Crores before the allotment of units of the scheme are marketed to other potential investors.  

(vi) An infrastructure debt fund scheme shall be launched either as close ended scheme maturing after more than 5 years or interval scheme with lock in of 5 years and interval period not longer than one month as may be specified in the scheme information document. The tenure of the scheme would be allowed to be extended upto 2 years beyond the original tenure with the consent of 2/3rd of its investors by value.

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