Banks must value unquoted InvIT and REIT units at disclosed NAV — and at ₹1 if NAV is not disclosed as SEBI requires or the units are infrequently traded
RBI has inserted paragraphs 84A and 84B in the Commercial Banks investment portfolio Directions, 2025 to bring uniformity in how banks value units of Infrastructure Investment Trusts and Real Estate Investment Trusts. Quoted units follow the rules for quoted securities; unquoted units are valued at the NAV disclosed by the trust, failing which at ₹1. In force from 22 September 2026.
Key facts
- Published
- 22 September 2026
- Section
- FEMA & RBI
- What it is
- Clarified
- In force
- 22 September 2026 (date of issue)
- Who it affects
- Commercial banks holding InvIT and REIT units or other instruments; bank treasury and valuation teams
In 30 seconds
- The Third Amendment Directions, 2026 are dated 22 September 2026 (RBI/2026-27/264) and came into effect from the date of issue.
- New paragraph 84A covers InvITs; new paragraph 84B covers REITs. The two are worded alike.
- Quoted securities and units: valued as per the existing instructions for quoted securities.
- Unquoted units: valued at the NAV disclosed by the InvIT or REIT.
- If the trust fails to compute and disclose NAV in the manner and frequency SEBI regulations specify, its units are valued at ₹1.
- The ₹1 treatment also applies to units classified as infrequently traded under the SEBI regulations.
हिंदी में सार
RBI ने 22 सितंबर 2026 को commercial banks के निवेश पोर्टफ़ोलियो निर्देशों में पैरा 84A और 84B जोड़े हैं, ताकि InvIT और REIT यूनिटों का मूल्यांकन एक जैसा हो। quoted यूनिटों का मूल्यांकन quoted प्रतिभूतियों के नियमों से होगा; unquoted यूनिट ट्रस्ट द्वारा घोषित NAV पर। अगर ट्रस्ट SEBI नियमों के अनुसार NAV की गणना और घोषणा नहीं करता, या यूनिट infrequently traded वर्ग में हैं, तो मूल्य ₹1 माना जाएगा। यह जारी होने की तारीख़ से लागू है।
What RBI has done
Chapter IX of the Reserve Bank of India (Commercial Banks – Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025, dated 28 November 2025, deals with fair valuation of investments. RBI says there is a need to amend it “to ensure clarity and uniform practices” in the valuation of units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs).
By the Third Amendment Directions, 2026 dated 22 September 2026, issued under section 35A of the Banking Regulation Act, 1949, two paragraphs have been inserted: 84A for InvITs and 84B for REITs. They came into effect from the date of issue.
The valuation rules
| Instrument | How a bank must value it |
|---|---|
| Quoted securities issued by an InvIT / REIT, and quoted units | Mutatis mutandis as per the instructions in the Directions for quoted securities |
| Unquoted units | At the NAV as disclosed by the InvIT / REIT |
| Unquoted units where the trust fails to compute and disclose NAV in the manner and frequency specified under the SEBI regulations | ₹1 |
| Units classified as infrequently traded in terms of the SEBI regulations | ₹1 |
| Other unquoted instruments issued by an InvIT / REIT | As per the methodology the Directions specify for such instruments |
The SEBI regulations referred to are the SEBI (Infrastructure Investment Trusts) Regulations, 2014 for InvITs and the SEBI (Real Estate Investment Trusts) Regulations, 2014 for REITs.
Why the ₹1 rule matters
Under paragraphs 84A and 84B, a bank cannot carry unquoted units at a NAV that the trust has not computed and disclosed in the way and at the intervals SEBI’s regulations require. In that case the value of the units “shall be treated as ₹1 for the purpose of these Directions”. The amendment applies the same treatment to units that are classified as infrequently traded under those SEBI regulations.
The amendment does not itself say how the resulting change in value is to be accounted for; that follows from the rest of the Directions, which this amendment does not reproduce.
Scope
These amendment directions modify the Directions that apply to commercial banks. The document does not deal with other regulated entities.
What banks should do
- List every InvIT and REIT exposure and separate quoted from unquoted instruments, and units from other instruments such as debt.
- For unquoted units, confirm that the trust is computing and disclosing NAV in the manner and frequency SEBI’s regulations specify. If it is not, value the units at ₹1.
- Check whether any units held are classified as infrequently traded under the SEBI regulations; those too go at ₹1.
- Apply the rules from 22 September 2026 — there is no transition period in the amendment.
Questions and answers
How must a bank value unquoted InvIT or REIT units?
At the NAV as disclosed by the InvIT or REIT, under new paragraphs 84A and 84B of the Commercial Banks investment portfolio Directions, 2025.
When are the units valued at ₹1?
Where the InvIT or REIT fails to compute and disclose NAV in the manner and frequency specified under the SEBI (Infrastructure Investment Trusts) Regulations, 2014 or the SEBI (Real Estate Investment Trusts) Regulations, 2014, and also where the units are classified as infrequently traded in terms of those regulations.
What about quoted units?
Quoted securities issued by InvITs and REITs, and quoted units, are valued mutatis mutandis as per the instructions in the Directions for quoted securities.
From when do these rules apply?
From the date of issue of the Amendment Directions, 22 September 2026.
Published 22 September 2026. Updated 5 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.