RBI amends valuation rules for InvIT, REIT units held by all-India financial institutions
Sep 22, 2026
Synopsis
The RBI has amended valuation norms for InvIT and REIT units held by all-India financial institutions, introducing separate provisions for quoted and unquoted units. Unquoted units will generally be valued at disclosed NAV, while units of trusts that fail to meet prescribed NAV disclosure requirements, or are classified as infrequently traded, will be valued at Re 1 for the purpose of the directions.
The Reserve Bank of India (RBI) on Tuesday revised valuation norms for units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) held by all-India financial institutions, introducing standardised rules for quoted and unquoted units.
The RBI said the amendments were aimed at removing ambiguity and ensuring uniform valuation practices across institutions. The changes have been incorporated into Chapter VI of the Reserve Bank of India (All India Financial Institutions - Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025, issued on November 28, 2025.
"In order to ensure clarity and uniform practices in the valuation of units of Infrastructure Investment Trust (InvIT) and Real Estate Investment Trusts (REIT), there is a need to amend the extant instructions," the central bank said.
The revised framework, titled the Reserve Bank of India (All India Financial Institutions - Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026, takes effect immediately from the date of issue.
The RBI has inserted two new provisions — Paragraph 58A for InvITs and Paragraph 58B for REITs — into the existing directions.
Under the amended rules, quoted securities and units issued by InvITs and REITs will be valued mutatis mutandis in accordance with the existing instructions applicable to quoted securities.
For unquoted InvIT units, the valuation will be based on the net asset value (NAV) disclosed by the trust.
"Units: The valuation shall be done at the NAV as disclosed by the InvIT," the RBI said.
However, the central bank has prescribed a value of Re 1 for units where an InvIT fails to calculate and disclose NAV in the manner and frequency required under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.
"Where an InvIT fails to compute and disclose the NAV in the manner and frequency specified under SEBI (Infrastructure Investment Trusts) Regulations, 2014, the value of its units shall be treated as Re 1 for the purpose of these Directions," the notification said.
The same treatment will apply to InvIT units classified as infrequently traded under the SEBI regulations.
The RBI has prescribed an identical framework for unquoted REIT units. These will be valued at the NAV disclosed by the REIT.
"Units: The valuation shall be done at the NAV as disclosed by the REIT," the notification said.
Where a REIT does not calculate and disclose NAV in the manner and frequency prescribed under the SEBI (Real Estate Investment Trusts) Regulations, 2014, its units will similarly be valued at Re 1 for the purpose of the RBI directions.
"Where a REIT fails to compute and disclose the NAV in the manner and frequency specified under SEBI (Real Estate Investment Trusts) Regulations, 2014, the value of its units shall be treated as Re 1 for the purpose of these Directions," the RBI said.
The Re 1 treatment will also apply to REIT units classified as infrequently traded under the applicable SEBI regulations.
For other unquoted instruments issued by InvITs and REITs, all-India financial institutions will continue to apply the valuation methodologies prescribed under the existing directions.
The RBI said the amendments were issued under powers conferred by Section 45L of the Reserve Bank of India Act, 1934, along with other enabling statutory provisions, and were considered necessary in the public interest.
[The Economic Times]
