Asset monetisation plan needs to be accelerated, says SEBI Chairman

tuhinkantapandey

Securities and Exchange Board of India (SEBI) Chiarman Tuhin Kanta Pandey on September 18 said asset monetisation plan needs to be accelerated.

The acceleration needs to be done in various sectors such as roads, railways, ports, airports, energy, petroleum, gas, and logistics, he added.

“Asset monetisation plan of central government has played a key role in development of market for years. Going forward, there is a need to accelerate asset monetisation in various sectors such as roads, railways, ports, airports, energy, petroleum and gas, and logistics,” Pandey said during his address at National Bank for Financing Infrastructure and Development (NaBFID) Infrastructure Conclave 2025.

He added that relying solely on the banks and government budgets for infrastructure financing exposes the concentration risk.

“Relying solely on banks or government budgets exposes us to concentration risk. Markets, on the other hand, offer a various instruments such as corporate bonds, municipal bonds, among others, that spread risk across multiple participants,” Pandey said.

To strengthen the link between infrastructure and markets, SEBI has taken several measures to diversify and deepen financing avenues. Through diverse instruments such as IPOs, right issues, FBOs, QIPs, professional allotments and private placements, companies in the infrastructure are able to raise long-term equity that fuels their expansion.

Alongside the private market issuances, the real estate investment trusts and infrastructure investment trusts have emerged as one of the most promising avenues for generalizing long-term capital into infrastructure and real estate. Globally, these projects have proved their worth as efficient vehicles for monetizing completed assets, recycling capital into new projects and providing investors with transparent yield-generating opportunities. In India too, REITs and INVITs have gained traction over the past few years, he added.