The Reserve Bank of India has amended commercial banks’ investment portfolio rules with immediate effect to establish uniform valuation requirements for instruments issued by Infrastructure Investment Trusts and Real Estate Investment Trusts. The changes parallel valuation requirements issued for local area banks and follow the RBI’s separate specification of risk weights for commercial bank exposures to REITs. Quoted InvIT and REIT securities and units must be valued under the existing rules 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 fails to calculate and disclose net asset value in the manner and frequency required by the relevant Securities and Exchange Board of India regulations. The INR 1 treatment also applies to units classified as infrequently traded, while other unquoted instruments must follow the valuation methodology applicable to their instrument type.
2026-09-22Reserve Bank of India
Reserve Bank of India standardizes commercial banks’ valuation of InvIT and REIT instruments
The Reserve Bank of India has standardized commercial 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.