To help generate low-cost funds for renewable energy ventures, capital markets regulator Sebi is considering allowing listing of a new type of entities named ‘YieldCos’ that have become very popular in the US. The proposed norms are likely to be discussed by Sebi’s board soon, sources said. The regulator may first issue draft regulations, on which comments would be sought from all stakeholders before deciding the final norms. The proposed new regime would also require other regulatory changes, including by RBI and the Tax Department, sources added. This would be on the lines of REITs (Real Estate Investment Trust) and InViTs (Infrastructure Investment Trust). Bond and other securities based on renewable energy are also under Sebi’s consideration. A ‘YieldCo’ is a publicly listed company that is formed to own assets that generate a predictable cash flow, primarily through long-term contracts. In this model, the cost of capital is lowered by separation of volatile assets like development, research and construction. This model is already been gaining ground in the USA and some other markets.