SEBI Launches 3 Data Benchmarking Institutions

Mr. Ashwani Bhatia, a longstanding member of SEBI, announced the opening of three Data Benchmarking Institutions (DBIs) and stated that data access will be a ground-breaking endeavor to improve openness and reliability in Real Estate Investment Trusts (REITs).

The Securities and Exchange Board of India provided direction to CAMS, CARE Edge, and KFin Tech while they constructed the three platforms. Mr. Bhatia went on to say that the requirement for standardized data in the rapidly growing REITs market, which presently has an asset value of Rs 1.4 lakh crore, was the driving force behind the decision to launch the DBIs. 

According to him, the DBIs are intended to function as a centralized source of trustworthy, comparable data, empowering investors to make well-informed decisions and promoting increased market confidence.

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The launch, he continued, was a step in the development of the financial markets, which started as unofficial transactions based on trust and progressed to today’s sophisticated transactions driven by accuracy and openness.

Investors can obtain data on REIT performance, operational measures, valuation criteria, and disclosures through the DBIs. Mr. Bhatia further emphasized that, by enabling investors to join with as little as Rs 10 lakh, the effort may be very helpful in promoting smaller investments in REITs. 

He hoped that the DBIs would bring in a new era of openness and give investors the knowledge and resources they needed to comprehend different valuation assumptions.

“I am reminded of the words of Peter Drucker. What gets measured gets managed. The DBI will ensure that we measure the right things in the right way, that we can manage our markets with greater precision,” he said.

Pramod Rao, Executive Director of SEBI, also spoke at the event and emphasized the development of REITs as an investment vehicle that could provide accessibility and liquidity while addressing inefficiencies in traditional real estate. The increase in the segment, he continued, was “nothing less than stupendous.”