The new directions require unquoted InvIT and REIT units to be valued at the NAV disclosed by the trust. If the required NAV is not disclosed, or the units are classified as infrequently traded, the value will be treated as ₹1 for the purpose of the directions.
BKK Bureau, New Delhi | 27 September 2026 | 11:40 AM IST
The Reserve Bank of India has amended its investment-portfolio directions for All India Financial Institutions, introducing specific valuation rules for units and other instruments issued by Infrastructure Investment Trusts and Real Estate Investment Trusts. The Reserve Bank said the amendment is intended to bring clarity and uniformity to the valuation of these investments.
The Reserve Bank of India (All India Financial Institutions – Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026, were issued on September 22, 2026. The directions take effect from the date of issue and amend the RBI’s 2025 directions on the classification, valuation and operation of investment portfolios.
Rules for InvIT investments
Under the newly inserted Paragraph 58A, quoted securities issued by InvITs and quoted InvIT units must be valued in the same manner as quoted securities under the existing directions. The provision applies to investments held by the All India Financial Institutions covered by the RBI framework.
For unquoted InvIT units, valuation must be based on the net asset value disclosed by the relevant InvIT. The RBI notification links this requirement to the manner and frequency of NAV computation and disclosure prescribed under the Securities and Exchange Board of India’s InvIT Regulations, 2014.
If an InvIT does not compute and disclose its NAV in the manner and frequency specified under those regulations, the value of its units will be treated as ₹1 for the purposes of the RBI directions. The same ₹1 treatment will apply to InvIT units classified as infrequently traded under the SEBI regulations.
The amendment separately states that other unquoted instruments issued by an InvIT must be valued using the methodology already specified for those types of instruments in the RBI directions.
Parallel framework for REITs
The RBI has introduced a corresponding Paragraph 58B for Real Estate Investment Trusts. Quoted securities issued by REITs and quoted REIT units must be valued according to the instructions applicable to quoted securities under the directions.
Unquoted REIT units must be valued at the NAV disclosed by the REIT. Where the REIT fails to compute and disclose the NAV in the manner and frequency specified under the SEBI Real Estate Investment Trusts Regulations, 2014, the units will be assigned a value of ₹1 for the purpose of the RBI directions. This treatment also applies to REIT units classified as infrequently traded under the SEBI regulations.
As with InvITs, other unquoted instruments issued by a REIT must be valued according to the methodology prescribed for those instruments elsewhere in the RBI directions.
Regulatory basis
The amendment was issued under the powers conferred on the RBI by Section 45L of the Reserve Bank of India Act, 1934, along with other enabling legal provisions. The notification was signed by Sunil T S Nair, Chief General Manager, on behalf of the Reserve Bank.
Why it matters
The amendment gives All India Financial Institutions a specific and uniform framework for valuing quoted and unquoted InvIT and REIT investments. It also establishes a defined ₹1 valuation treatment where required NAV disclosures are not made or units are classified as infrequently traded.
Source: Reserve Bank of India
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