The Reserve Bank of India has introduced uniform valuation requirements for local area banks’ holdings of Infrastructure Investment Trust (InvIT) and Real Estate Investment Trust (REIT) instruments, effective immediately. The amendments form part of parallel measures applying consistent treatment to these instruments across several categories of regulated institutions. Quoted InvIT and REIT securities and units must follow the existing requirements for quoted securities. Unquoted units must generally be valued at the net asset value disclosed by the trust, but banks must assign a value of INR 1 where the trust does not calculate and disclose net asset value as required under Securities and Exchange Board of India regulations or where the units are classified as infrequently traded. Other unquoted instruments issued by InvITs or REITs remain subject to the valuation methodology applicable to the relevant instrument type.
2026-09-22Reserve Bank of India
Reserve Bank of India standardizes local area banks’ valuation of InvIT and REIT instruments
The Reserve Bank of India has standardized local area banks’ valuation of InvIT and REIT instruments with immediate effect. Quoted holdings follow existing quoted security rules, while unquoted units generally use disclosed net asset value and must be valued at INR 1 if required disclosures are not made or the units are classified as infrequently traded.