Money-market-and-capital-market-in-india-intruments-and-dynamics / Money Market and Capital Market in India - Intruments and Dynamics / Infrastructure Debt Funds (IDFs)
Infrastructure Debt Funds (IDFs)
- Definition:
- Infrastructure Debt Funds (IDFs) are investment vehicles sponsored by commercial banks and Non-Banking Financial Companies (NBFCs) in India. These funds attract investments from domestic and offshore institutional investors, particularly insurance and pension funds.
- Structure:
- IDFs can be structured either as a trust or a company. Trust-based IDFs are typically regulated by the Securities and Exchange Board of India (SEBI) and resemble Mutual Funds. Company-based IDFs, on the other hand, are usually NBFCs regulated by the Reserve Bank of India (RBI).
- Sponsorship:
- Only banks and Infrastructure Finance companies are eligible to sponsor IDF-NBFCs.
