India, Dec. 27 -- InvITs, or Infrastructure Investment Trusts, are SEBI-regulated investment vehicles in India that pool funds from investors to own and operate income-generating infrastructure assets like toll roads, power transmission lines, and pipelines.

InvITs function like mutual funds but focus on infrastructure, with units listed on stock exchanges for trading. They must distribute at least 90 percent of net distributable cash flows to unitholders quarterly, providing steady income similar to dividends. Sponsors (infrastructure firms) transfer assets to the trust via special purpose vehicles (SPVs), enabling developers to monetize completed projects and recycle capital for new ones.

Powergrid Infra InviTs PGInvIT is India's fi...