The Reserve Bank of India has issued new InvIT and REIT valuation guidelines for All India Financial Institutions (AIFIs). These Amendment Directions, released on September 22, 2026, bring much-needed clarity to how these instruments must be valued. They take effect immediately from the date of issue.
Key Details of the InvIT and REIT Valuation Amendment
The RBI has amended its 2025 Directions on the Classification, Valuation, and Operation of Investment Portfolios. Specifically, two new paragraphs — 58A and 58B — now cover InvITs and REITs respectively. These additions ensure AIFIs follow uniform practices when valuing these assets.
For quoted InvIT and REIT units, institutions must apply the same valuation rules used for other quoted securities. However, unquoted units follow a different approach. Their valuation must use the Net Asset Value (NAV) disclosed by the respective InvIT or REIT.
Additionally, the RBI has introduced a clear penalty provision. If an InvIT or REIT fails to compute and disclose its NAV as required under SEBI’s 2014 regulations, the unit value defaults to ₹1. This rule also applies to units classified as infrequently traded under those same SEBI regulations.
For other unquoted instruments issued by an InvIT or REIT — beyond units — institutions must follow the valuation methodology already specified for such instruments in the existing Directions.
What This Means for Financial Institutions
Therefore, AIFIs now have a standardised framework for handling InvIT and REIT investments in their portfolios. This removes earlier ambiguity and reduces the risk of inconsistent reporting across institutions. As a result, portfolio transparency and regulatory compliance should improve significantly.
Meanwhile, the ₹1 valuation floor for non-compliant entities acts as a strong deterrent. It encourages InvITs and REITs to maintain timely and accurate NAV disclosures. For example, any lapse in disclosure directly impacts how an institution must record the investment’s value.
The RBI issued these directions under Section 45L of the Reserve Bank of India Act, 1934. Chief General Manager Sunil T S Nair signed the notification. AIFIs should review their current valuation policies and update them to align with the new rules without delay.
Source: RBI Notifications
