Sebi aims to empower REIT investors with the launch of Data Benchmarking Institutions

Sebi aims to empower REIT investors with the launch of Data Benchmarking Institutions

Access to data will be a pioneering initiative to enhance transparency and reliability in Real Estate Investment Trusts (REITs), Sebi whole-time member Ashwani Bhatia said while launching three Data Benchmarking Institutions (DBI).

The three platforms have been developed by CAMS, CARE Edge, and KFin Tech under the guidance of the Securities and Exchange Board of India (Sebi).

The Sebi member further said that the decision behind launching the DBIs was the need for standardised data in the REITs market, which currently boasts an asset value of Rs 1.4 lakh crore and is expanding rapidly.

The DBIs, he said, aim to serve as a centralised repository of reliable, comparable data, enabling investors to make informed decisions and fostering greater trust in the market.

He further said that the launch was part of the evolution of financial markets, from informal trades based on trust to today’s sophisticated exchanges driven by transparency and accuracy.

Through the DBIs, investors can access information on performance of REITs, operation metrics, valuation standards and disclosures. The Sebi member also highlighted that the initiative could play an important role in facilitating smaller investments in REITs, allowing investors to participate with as little as Rs 10 lakh.

He expressed hope that the DBIs would usher in a new era of transparency, empowering investors with tools to understand various 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.

Also speaking at the event, Pramod Rao, Executive Director, SEBI highlighted the growth of REITs as an investment platform, which could address inefficiencies in traditional real estate, offering accessibility and liquidity. He added that the growth in the segment was "nothing less than stupendous."

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