RBI Revises REIT, InvIT Valuation Rules: Check New Framework

RBI has amended the classification, valuation, and operations of investment portfolios for Infrastructure Investment Trust (InvIT) and Real Estate Investment Trust (REIT) units for AIFIs. These amendments provide a different valuation methodology for quoted and unquoted units and seek to bring clarity and consistency in the valuation process. The changes have been made in the RBI (All India Financial Institutions – Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026 and are effective from their date of issuance.

What Have Been Amended by RBI for InvIT and REIT Units?

The RBI has made two additions to Chapter VI of its investment portfolio directions.

• Paragraph 58A relates to InvIT units.
• Paragraph 58B relates to REIT units.

If the securities and InvIT or REIT units are quoted, then AIFIs need to follow the existing instructions issued by RBI for valuation of quoted securities.

In cases where units are unquoted and market quotations are not available, a different valuation methodology is proposed.

Valuation of Unquoted InvIT Units

As per the new guidelines, valuation of unquoted InvIT units is normally done through the NAV reported by the InvIT.

However, in some cases, the RBI has laid down that the value will be ₹1.

This is the case when the InvIT fails to report NAV in accordance with SEBI (Infrastructure Investment Trusts) Regulations, 2014.

Valuation at ₹1 also holds true in cases where the InvIT unit falls under the category of Infrequently Traded InvIT units as per the relevant SEBI regulations.

Valuation of InvIT Units Under New RBI Guidelines

New REIT Valuation Norms

The RBI has put into place a fairly comparable structure for the valuation of Real Estate Investment Trusts (REITs).

Units of REITs that are quoted will be valued in accordance with the RBI instructions applicable to quoted securities.

In the case of unquoted REIT units, the AIFIs will value the units based on the NAV reported by the REIT.

If any REIT is unable to calculate and disclose NAV as per the methodology and periodicity laid down in the SEBI (Real Estate Investment Trusts) Regulations, 2014, then the units will be valued at ₹1 under the RBI directions.

REIT Valuation Under the New RBI Norms

What happens to other unquoted REIT and InvIT instruments?

The revised guidance does not alter the manner of valuing other unquoted instruments issued by REITs and InvITs.

In case of other unquoted instruments, AIFIs would continue using valuation techniques that are prescribed by the existing RBI directives.

It means that the revised provisions would be restricted only to the valuation of REIT and InvIT units.

Why has the RBI revised the valuation framework?

According to the RBI, these revisions were done to avoid ambiguities and provide uniform valuation procedures for all financial institutions operating across the country.

These amendments are very significant in cases when units are not quoted in any active market or NAV disclosures are not fulfilled.

These amendments have been made pursuant to powers conferred by Section 45L of the Reserve Bank of India Act, 1934, among others.