Reserve Bank of India Introduces Revised Valuation Framework for InvIT and REIT Units Held by All-India Financial Institutions

Key facts

• 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 to ensure 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.
• RBI has inserted two new provisions into Chapter VI of its investment portfolio directions: Paragraph 58A for InvITs and Paragraph 58B for REITs.
• Quoted InvIT and REIT units will be valued in accordance with the existing RBI instructions applicable to quoted securities.
• Unquoted InvIT units will be valued at the net asset value (NAV) disclosed by the InvIT.
• A ₹1 valuation applies where an InvIT fails to calculate and disclose NAV in the manner and frequency specified under the SEBI (Infrastructure Investment Trusts) Regulations, 2014, and to InvIT units classified as infrequently traded under applicable SEBI regulations.
• Unquoted REIT units will be valued at the NAV disclosed by the REIT, with a ₹1 valuation where the REIT does not calculate and disclose NAV as prescribed under the SEBI (Real Estate Investment Trusts) Regulations, 2014, or for units classified as infrequently traded.
• Other unquoted instruments issued by InvITs and REITs will continue to follow the valuation methodologies prescribed under the existing RBI directions.
• The amendments were issued under Section 45L of the Reserve Bank of India Act, 1934, and were considered necessary in the public interest.