SEBI Flags Cash Payout Disclosure Gaps at Digital Fibre InvIT

SEBI has issued a warning letter to Digital Fibre Infrastructure Trust (InvIT) regarding its disclosures for distributing surplus cash. The advisory, received on April 8, 2026, follows a SEBI inspection covering the period from April 1, 2024, to March 31, 2025.

Trust Reports No Operational Impact

Infinite India Investment Management, the Trust's Investment Manager, confirmed it received the advisory and stated it has no impact on the InvIT's financial or operational activities.

Why SEBI Issued the Warning

SEBI's review identified gaps in the InvIT's financial statements concerning the reporting of surplus cash distributions beyond the standard Net Distributable Cash Flow (NDCF). The regulator is emphasizing complete disclosure of these payouts.

Importance of Transparent Reporting

Clear and accurate reporting of cash distributions is vital for maintaining investor confidence in the Infrastructure Investment Trust (InvIT) sector. SEBI's directive ensures unitholders are fully informed about all surplus funds being distributed.

Background on Digital Fibre InvIT

Digital Fibre Infrastructure Trust, sponsored by Reliance Industrial Investments and Holdings Ltd., is a significant player in India's fiber network infrastructure via its special purpose vehicle (SPV), Jio Digital Fibre Private Limited. Established in early 2019, the InvIT has raised substantial capital. SEBI has been reinforcing disclosure standards for InvITs and Real Estate Investment Trusts (REITs) to promote greater financial transparency.

Future Compliance and Scrutiny

Going forward, the Investment Manager must ensure all surplus cash distributions are fully detailed in the InvIT's financial statements. Procedures for calculating and reporting Net Distributable Cash Flow (NDCF) and any additional surplus amounts will likely undergo closer scrutiny, reflecting the ongoing trend towards enhanced transparency in the InvIT sector.

Risk and Peer Context

The advisory itself did not detail specific risks for the InvIT. Searches for comparable recent penalties for disclosure breaches concerning this InvIT or its manager did not yield immediate results. Other Indian InvITs, such as IndiGrid, Powergrid InvIT, and IRB Infrastructure Trust, also operate under SEBI's strict disclosure requirements, highlighting the sector-wide importance of regulatory adherence and investor protection.