Mumbai, Feb. 5 -- India's market regulator has proposed targeted regulatory changes for real estate and infrastructure investment trusts, seeking to ease cash deployment, borrowing flexibility, and post-concession asset handling while retaining existing investor protection norms.

In a consultation paper issued on Thursday, the Securities and Exchange Board of India (Sebi) has proposed allowing InvITs to continue holding special purpose vehicles (SPVs) beyond the end of a project's concession period.

Under current rules, an SPV is required to hold at least 90% of its assets in infrastructure projects. Once a concession ends, the asset typically reverts to the government, leaving the SPV without an eligible infrastructure project.

Howeve...