New RBI Rules Bring Uniform Valuation of InvIT and REIT Investments
What Happened
RBI has amended valuation norms for Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) held by all-India financial institutions. Under the revised framework, unquoted units will be valued based on the Net Asset Value (NAV) disclosed by the trust, while units of trusts that fail to disclose NAV as required under SEBI regulations, or are classified as infrequently traded, will be valued at Re 1. The changes take effect immediately.
Key Takeaways
The RBI said the amendments are aimed at ensuring clarity, consistency and uniform valuation practices across financial institutions. The move standardises how InvIT and REIT investments are valued and introduces safeguards for trusts that do not meet NAV disclosure requirements.