Current Context: On 22 September 2026, the Reserve Bank of India revised the valuation framework for Real Estate Investment Trust and Infrastructure Investment Trust units held by regulated banks and all-India financial institutions. Effective immediately, the amendment establishes separate methods for quoted and unquoted units to improve consistency, transparency and comparability in institutional investment portfolios.
Key Points:
- REIT stands for Real Estate Investment Trust, while InvIT means Infrastructure Investment Trust.
- Quoted units will continue to be valued using prices published by Financial Benchmarks India Private Limited.
- If an FBIL price is unavailable, institutions may use prices from recognised stock exchanges or RBI/SEBI-authorised trading and reporting platforms.
- Prices published by the Fixed Income Money Market and Derivatives Association of India may also be used where applicable.
- Unquoted units must be valued using the Net Asset Value disclosed by the concerned REIT or InvIT.
- Units must be assigned a nominal value of ₹1 if the trust fails to calculate and disclose NAV according to the manner and frequency prescribed by SEBI.
- The ₹1 valuation will also apply to units classified as infrequently traded under SEBI regulations.
- Other unquoted instruments issued by REITs and InvITs will continue to follow the valuation method applicable to the respective instrument.
Question
Q1. Under RBI’s revised framework, how will an unquoted REIT or InvIT unit be valued if the trust does not disclose its NAV according to SEBI requirements?a) At its original purchase price
b) At its face value
c) At zero value
d) At ₹1
Answer: d) A nominal valuation of ₹1 applies when the prescribed NAV disclosure is unavailable or when the unit is classified as infrequently traded. This conservative treatment prevents institutions from recognising an unsupported or unreliable valuation.
