Explanation:

 Infrastructure Investment Trusts (InvITs) are mutual fund like institutions that enable investments into the infrastructure sector by pooling small sums of money from multitude of individual investors for directly investing in infrastructure. InvITs are designed to attract low-cost, long term capital and the underlying focus is to reduce the funding pressure on the banking system as well as generating fresh equity capital for infrastructure projects.

 Two types of InvITs have been allowed by SEBI :  

• one, which invests in completed and revenue generation infrastructure projects
• the other, which has the flexibility to invest in completed or underconstruction projects.

 InvITs are set up as a trust and registered with SEBI.  As per present regulations, InvIT investments are not open for small and retail investors. The minimum application size for InvIT units is Rs 10 lakh. The main investors could be foreign institutional investors, insurance and pension funds and domestic institutional investors (like mutual funds, banks) and also
super-rich individuals.

Sebi recently allowed real estate and infrastructure investment trusts to raise debt securities. India's first InvIT, IRB InvIT fund sponsored by IRB Infrastructure Developers ltd. (a publicly held company) was launched recently after SEBI allowed mutual funds to invest in InvIT.