The Reserve Bank of India (RBI) on Tuesday prescribed valuation norms for unquoted units of infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) to ensure clarity and uniform practices in valuation. The amendment takes effect immediately. Under the amended directions, quoted InvIT and REIT units will be valued using the existing methodology. Under these norms, banks determine fair value based on prices declared by Financial Benchmarks India, while securities for which FBIL prices are unavailable are valued using quoted prices from recognised stock exchanges, reporting platforms or trading platforms authorised by the RBI or Sebi. Valuation can also be determined by prices declared by the Fixed Income Money Market and Derivatives Association of India. For unquoted units, banks will have to use the NAV disclosed by the InvIT or REIT. If a trust fails to compute and disclose its NAV in the Sebi-prescribed manner and frequency, the value of its units will be treated as Re 1 for the purpose of the RBI’s investment valuation norms.