RBI revises InvIT, REIT valuation norms for all-India financial institutions; check new rules

The Reserve Bank of India (RBI) has revised valuation norms for Infrastructure Investment Trust (InvIT) and Real Estate Investment Trust (REIT) units held by all-India financial institutions (AIFIs), introducing separate and standardised treatment for quoted and unquoted units.

The central bank said the changes are aimed at removing ambiguity and ensuring uniform valuation practices across institutions. The revised framework takes effect immediately and has been incorporated into the RBI (All India Financial Institutions - Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026.

New provisions for InvITs and REITs

The RBI has inserted two new provisions into Chapter VI of its investment portfolio directions — Paragraph 58A for InvITs and Paragraph 58B for REITs.

Under the revised framework, quoted securities and units issued by InvITs and REITs will be valued, mutatis mutandis, in accordance with the existing RBI instructions applicable to quoted securities.

For unquoted InvIT units, valuation will be based on the net asset value (NAV) disclosed by the InvIT.

The RBI has prescribed a ₹1 valuation where an InvIT fails to calculate and disclose NAV in the manner and frequency specified under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.

The same ₹1 treatment will apply to InvIT units classified as infrequently traded under the applicable SEBI regulations.

Identical framework for REIT units

The central bank has prescribed the same broad framework for REITs.

Unquoted REIT units will be valued at the NAV disclosed by the REIT. However, where a REIT does not calculate and disclose NAV according to the manner and frequency prescribed under the SEBI (Real Estate Investment Trusts) Regulations, 2014, its units will be valued at ₹1 for the purpose of the RBI directions.

Other unquoted instruments

For other unquoted instruments issued by InvITs and REITs, AIFIs will continue to follow the valuation methodologies prescribed under the existing RBI directions.

The amendments were issued under powers conferred by Section 45L of the Reserve Bank of India Act, 1934, along with other enabling statutory provisions. The RBI said the changes were considered necessary in the public interest.

The revised framework therefore creates a clearer valuation mechanism for AIFIs holding REIT and InvIT units, particularly where market quotations are unavailable or the trusts do not meet prescribed NAV disclosure requirements.