The Reserve Bank of India (RBI) has updated the valuation framework for Infrastructure Investment Trust (InvIT) and Real Estate Investment Trust (REIT) units held by All-India Financial Institutions (AIFIs).
The revised norms introduce separate valuation rules for quoted and unquoted units. According to the RBI, the changes are intended to remove uncertainty and bring greater consistency to the way these investments are valued across financial institutions.
The amendments have come into effect immediately and have been incorporated into the RBI (All India Financial Institutions – Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026.
New Rules for InvIT Units
The RBI has added two new provisions to Chapter VI of its investment portfolio directions. Paragraph 58A deals with InvITs, while Paragraph 58B covers REITs.
Under the updated framework, quoted InvIT and REIT units will be valued, with necessary modifications, according to the existing RBI rules for quoted securities.
For unquoted InvIT units, the valuation will be based on the net asset value (NAV) disclosed by the InvIT.
| InvIT Investment | Valuation |
|---|---|
| Quoted InvIT units | Existing rules for quoted securities |
| Unquoted InvIT units | NAV disclosed by InvIT |
| Unquoted InvIT without prescribed NAV disclosure | ₹1 |
| Infrequently traded InvIT units | ₹1 |
If an InvIT does not calculate and disclose its NAV in the manner and frequency required under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, its units will be valued at ₹1 under the RBI framework.
The same ₹1 valuation will apply to InvIT units classified as infrequently traded under the relevant SEBI regulations.
Similar Valuation Framework for REITs
The RBI has introduced a similar approach for Real Estate Investment Trusts.
Quoted REIT units will follow the existing valuation rules applicable to quoted securities. For unquoted REIT units, AIFIs will use the NAV disclosed by the REIT.
If a REIT fails to calculate and disclose its NAV in accordance with the requirements of the SEBI (Real Estate Investment Trusts) Regulations, 2014, the units will be assigned a value of ₹1 for the purposes of the RBI directions.
| REIT Investment | Valuation |
|---|---|
| Quoted REIT units | Existing rules for quoted securities |
| Unquoted REIT units | NAV disclosed by REIT |
| Unquoted REIT without prescribed NAV disclosure | ₹1 |
| Infrequently traded REIT units | ₹1 |
Rules for Other Unquoted Instruments
For other unquoted instruments issued by InvITs and REITs, AIFIs will continue to use the valuation methods already prescribed under the exist