SEBI’s recent move to reduce the minimum subscription threshold and trading lot size in infrastructure investment trusts (InvITs) unlocks a new avenue for retail investors who have a long-term investment horizon.

Investments in InvITs propel infrastructure growth through monetisation of assets, and thereby lift the overall economy. Retail investments in InvITs have, however, been limited so far, given the high ticket sizes. This is set to change now as SEBI has, in its June 29 board meeting, reduced the minimum subscription for investment in InvITs to Rs 10,000-15,000 from Rs 1 lakh earlier and the trading lot size to one unit from 100 units, thus enhancing access to retail investors.

The move also paves way to enhanced liquidity of the instruments and better price discovery in the secondary market.