On Monday, the Securities and Exchange Board of India (Sebi) proposed a significant change that would allow Infrastructure Investment Trusts (InvITs) in the 'Roads and Bridges' sector to add payments for major maintenance expenses back into their Net Distributable Cash Flow (NDCF) calculations, provided these expenses are funded by external debt. This proposal follows representations from the Bharat InvITs Association (BIA), which argued that major maintenance expenses, while essential for extending the life and quality of road projects, cannot be capitalized under current accounting standards. Consequently, these expenses have been reducing the operational cash flow and, by extension, the NDCF. Sebi's proposal requires strict unitholder approval, with at least 60% of votes needed to proceed. The approval can cover all major maintenance expenses for the project's life cycle or be specific to certain expenses. The consultation paper also outlines necessary disclosures for unitholders regarding projects and financial impacts. Public comments on the proposal are invited until June 22.