The Reserve Bank of India, vide five parallel notifications dated September 22, 2026 (RBI/2026-27/264 to 268), amended the Classification, Valuation, and Operation of Investment Portfolio Directions, 2025 for Commercial Banks, Local Area Banks, Small Finance Banks, Payments Banks, and All India Financial Institutions (AIFIs), with effect from the date of issue. The amendments insert new paragraphs in the respective Directions to establish a uniform valuation framework for units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs).
Under the framework: (i) quoted units of InvITs/REITs are to be valued as quoted securities (mutatis mutandis); (ii) unquoted units are to be valued at the NAV disclosed by the InvIT/REIT in accordance with the SEBI InvIT Regulations, 2014 or SEBI REIT Regulations, 2014, as applicable — and treated as ₹1 where NAV is not so disclosed or the units are infrequently traded; and (iii) other unquoted instruments continue to be valued as per the methodology applicable to such instruments. Banks and financial institutions are advised to update their investment valuation policies, board-approved valuation methodologies, and treasury systems to give effect to the revised framework.
