Reserve Bank of India (Commercial Banks - Classification, Valuation, and Operation of Investment Portfolio) Third Amendment Directions, 2026
RBI notification RBI/2026-27/264 · 22 Sept 2026
RBI notification RBI/2026-27/264 · 22 Sept 2026
Summary
Check the official recordThe Reserve Bank of India amends the 2025 Directions for the valuation of investment portfolios. The update provides specific valuation rules for units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). Banks must value quoted securities and units of InvITs and REITs according to existing instructions for quoted securities. For unquoted units, banks must use the Net Asset Value (NAV) disclosed by the trust. If a trust fails to disclose the NAV as required by SEBI regulations, or if the units are infrequently traded, banks must value the units at one rupee. Other unquoted instruments issued by these trusts follow the existing valuation methodology for such instruments. These changes take effect immediately.
What you must do
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RBI/2026-27/264 DOR.MRG.REC.No.228/00-00-001/2026-27
September 22, 2026
Reserve Bank of India (Commercial Banks - Classification, Valuation, and Operation of Investment Portfolio) Third Amendment Directions, 2026
Please refer to Chapter – IX of Reserve Bank of India (Commercial Banks - Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025, dated November 28, 2025, on fair valuation of investments. In order to ensure clarity and uniform practices in the valuation of units of Infrastructure Investment Trust (InvIT) and Real Estate Investment Trusts (REIT), there is a need to amend the extant instructions.
Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 (hereinafter called the Act) and all other laws enabling the Reserve Bank in this regard, the Reserve Bank, being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
“84A. Units of Infrastructure Investment Trusts (InvITs)
(1) Quoted securities issued by InvITs and units of InvITs shall be valued mutatis mutandis as per instructions given in these Directions for quoted securities.
(2) Unquoted instruments of InvITs shall be valued as under:
Units:
The valuation shall be done at the NAV as disclosed by the InvIT. Where an InvIT fails to compute and disclose the NAV in the manner and frequency specified under SEBI (Infrastructure Investment Trusts) Regulations, 2014, the value of its units shall be treated as ₹1 for the purpose of these Directions. Such treatment shall also apply to the InvIT units classified as infrequently traded in terms of the aforementioned SEBI Regulations.
Other instruments:
The valuation of other unquoted instruments issued by an InvIT shall be as per the methodology specified for such instruments above.”.
“84B. Units of Real Estate Investment Trusts (REITs)
(1) Quoted securities issued by REITs and units of REITs shall be valued mutatis mutandis as per instructions given in these Directions for quoted securities.
(2) Unquoted instruments of REITs shall be valued as under:
Units:
The valuation shall be done at the NAV as disclosed by the REIT. Where a REIT fails to compute and disclose the NAV in the manner and frequency specified under SEBI (Real Estate Investment Trusts) Regulations, 2014, the value of its units shall be treated as ₹1 for the purpose of these Directions. Such treatment shall also apply to the REIT units classified as infrequently traded in terms of the aforementioned SEBI Regulations.
Other instruments:
The valuation of other unquoted instruments issued by a REIT shall be as per the methodology specified for such instruments above.”.
(Sunil T S Nair)
Chief General Manager