Data Benchmarking Institutions (DBIs)

About

They are benchmarks to assist investors in making informed decisions by providing comprehensive information and comparative analysis of various Indian REITs.

Investors will have access to REIT performance metrics, operational data, valuation standards, and disclosures, enabling data-driven decision-making.

Collaboration

The platforms are launched under the guidance of SEBI, involving CareEdge, CAMS, and KFintech to consolidate key REIT information.

Significance

As a central repository of standardised and comparable data, DBIs will enhance transparency and ease of access to information in India’s emerging and promising REIT sector.

DBIs will enhance awareness and confidence in REITs by offering a comprehensive view of operational and financial data.

This initiative is crucial for building a robust information database and improving market efficiency as the REIT sector evolves.

What is Data benchmarking?

It  is a process for obtaining a measure – ‘a benchmark’.

It’s composed of three basic elements: the metric, the benchmark value, and the comparison group.

Essentially, it provides key performance indicators for each of the bureaux so that credit providers can choose the optimal solution – whether measured against industry peers or by an entirely different industry. This information can then be used to identify performance gaps.

How does it help?

Data benchmarking allows credit providers to address the significant gap in the credit community by providing evidence-based benchmarks and evaluating data quality and accuracy with complete pricing transparency.

This creates fairness in pricing and ensures quality data is input into credit risk programmes.

PRACTICE QUESTION

Q.Consider the following statements about the “Data Benchmarking Institutions (DBIs)” recently seen in the news:

1. They are benchmarks to assist investors in making informed decisions about Indian REITs.
2. The platforms are launched under the guidance of the Reserve Bank of India.
3. DBIs will enhance awareness and confidence in REITs by offering a comprehensive view of operational and financial data.

How many of the above statements is/are correct?

A. Only one

B. Only two

C. All Three

D. None

Answer: B

Explanation:

Statement 1 is correct:

●They are benchmarks to assist investors in making informed decisions by providing comprehensive information and comparative analysis of various Indian REITs.

●Investors will have access to REIT performance metrics, operational data, valuation standards, and disclosures, enabling data-driven decision-making.

Statement 2 is incorrect:

●The platforms are launched under the guidance of SEBI, involving CareEdge, CAMS, and KFintech to consolidate key REIT information.

Statement 3 is correct:

●As a central repository of standardised and comparable data, DBIs will enhance transparency and ease of access to information in India’s emerging and promising REIT sector. DBIs will enhance awareness and confidence in REITs by offering a comprehensive view of operational and financial data.

●This initiative is crucial for building a robust information database and improving market efficiency as the REIT sector evolves.