The Indian REITs Association (IRA) has launched 'Data Benchmarking Institutions' (DBIs) to provide investors with comprehensive information on real estate investment trusts (REITs). This initiative aims to create a central repository for standardized data, enhancing transparency and facilitating easier access to information in India's expanding REIT market. Under SEBI's guidance, firms like CareEdge, CAMS, and KFintech have developed platforms to offer detailed insights on REIT performance and operational metrics. This empowers investors to make informed, data-driven decisions. The DBIs represent a significant step forward in building a robust information database, ultimately improving market efficiency as the REIT sector evolves.
The Indian REITs Association (IRA) recently announced the launch of 'Data Benchmarking Institutions' (DBIs) aimed at providing investors with comprehensive information on real estate investment trusts. The association emphasized that this initiative marks a significant advancement in empowering investors in the Indian REIT market. According to the IRA, the DBIs will serve as a central repository for standardized and comparable data, which is expected to enhance transparency and simplify access to information within India's growing REIT sector.
They emphasized that this initiative is crucial for building a strong information database and improving market efficiency as the sector develops. Under the guidance of SEBI, three leading financial services firms-CareEdge, CAMS, and KFintech-have developed dedicated platforms to centralize key information about REITs, aiding investors in their decision-making processes. These platforms will offer detailed insights and comparative analyses to help investors evaluate the performance of various Indian REITs.
The IRA highlighted that the DBIs will grant investors access to comprehensive information on REIT performance, operational metrics, valuation standards, and disclosures. This initiative aims to empower investors to make data-driven decisions, improving their investment diligence and enabling more informed choices.
The journey of REITs in India began with the introduction of regulatory guidelines in 2014, leading to the public launch of REITs in 2019 with the listing of Embassy REIT. Subsequently, two more REITs were listed: Mindspace Business Parks REIT in 2020 and Brookfield India Real Estate Trust in 2021. In May 2023, Nexus Select Trust became India's first retail REIT. Indian REITs are mandated to invest 80% of their portfolio in income-generating properties and to distribute at least 90% of their net distributable cash flows to investors on a semi-annual basis.
In conclusion, the launch of the Data Benchmarking Institutions (DBIs) by the Indian REITs Association marks a significant advancement in enhancing transparency and accessibility in the Indian REIT sector. By providing detailed information on REIT performance and operational metrics, the initiative empowers investors to make informed, data-driven decisions, ultimately contributing to a more efficient and robust market as the sector continues to grow.
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