New Valuation Directives for InvITs and REITs: Impacts on the Indian Economy
The RBI introduced new guidelines for valuing InvITs and REITs, aiming to standardize practices and increase transparency in the Indian financial sector, fostering greater investor confidence.
On September 22, 2026, the Reserve Bank of India (RBI) released the Second Amendment Guidelines on Classification, Valuation, and Operation of Investment Portfolios for Small Finance Banks (SFBs), effective immediately. These guidelines aim to establish clarity and consistency in valuing Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). According to the new regulations, quoted securities issued by InvITs will be valued as per existing instructions. Meanwhile, unquoted instruments of InvITs will be assessed based on the Net Asset Value (NAV) disclosed by the InvIT. Should an InvIT fail to compute and disclose its NAV in line with SEBI’s Infrastructure Investment Trust Regulations, 2014, it will be valued using available information as close as possible. This measure seeks to enhance transparency within the Indian banking sector and bolster investor confidence both domestically and internationally.