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The Securities and Exchange Board of India (SEBI) and the Bharat InvIT Association (BIA) are collaborating to establish dedicated Data Benchmarking Institutes (DBIs) for Infrastructure Investment Trusts (InvITs), mirroring similar initiatives for Real Estate Investment Trusts (REITs). Financial service firms such as CAMS, CareEdge, and KFintech, in association with the InvIT body, are set to launch three platforms by the end of the month. These platforms aim to enhance transparency, improve data accessibility, and provide investors with comprehensive insights into listed InvITs. Initially, data for five publicly listed InvITs will be available, with details of 16 privately listed trusts being incorporated in a later phase. The initiative follows the introduction of similar platforms for REITs, with potential future linkages between the two.
The Securities and Exchange Board of India (SEBI) and the Bharat InvIT Association (BIA) are collaborating to establish dedicated data benchmarking institutes (DBIs) for Infrastructure Investment Trusts (InvITs), similar to the ones set up for Real Estate Investment Trusts (REITs). Advertisement
Sources familiar with the matter indicated that financial service firms, including CAMS, CareEdge, and KFintech, along with the InvIT association, are expected to launch three platforms by the end of the month. These platforms will serve as repositories for essential information and analyses related to listed InvITs, with the objective of enhancing transparency, improving data accessibility, and enabling more informed investment decisions.
According to one of the sources, the DBIs are currently in the final stages, undergoing minor refinements. The products will soon be submitted to the market regulator for final approval, and the launch date is expected to be confirmed by the end of this week.
The implementation will be carried out in phases. During the initial phase, data pertaining to five publicly listed InvITs will be made available. The second phase, scheduled for a few months after the launch, will integrate information on the remaining 16 privately listed trusts.
The five publicly listed InvITs set to feature on the platforms include India Grid Infrastructure Trust, Indus Infra Trust, IRB InvIT Fund, Capital Infra Trust, and PowerGrid Infrastructure Investment Trust. Collectively, these trusts hold a market capitalisation of approximately INR 30,000 crore.
The DBIs will function as a centralised repository, granting investors access to crucial details about InvITs' operational metrics, performance, valuation standards, and disclosures. Another source highlighted that the primary goal is to raise awareness about InvITs as an investment avenue and provide investors with accurate and extensive data to facilitate well-informed decisions.
This development follows the establishment of similar platforms for REITs in September. In the future, a common link may be created between the REIT and InvIT platforms or reciprocal links may be included on their respective websites.
The Indian Real Estate Investment Trusts (REITs) Association (IRA) had previously introduced three DBIs-compareitnow.in (CAMS), ReitsInfraEdge (CareEdge), and KFinsights (KFintech)-to monitor the performance and disclosures of the four listed REITs. Indian REITs are required to invest 80% of their portfolio in income-producing properties, pay out at least 90% of net distributable cash flows to investors semi-annually, and are limited to a financial leverage of 49%. The DBIs offer investors access to detailed information on REIT performance, operational metrics, valuation standards, and disclosures. This empowers investors to make data-driven decisions, allowing for better investment diligence and more informed investment choices.
Currently, there are four publicly listed REITs in India: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. The Indian REIT market currently oversees gross Assets Under Management (AUM) of over INR 1,40,000 crore. The portfolio managed by these REITs spans approximately 125 million square feet of Grade A office and retail space across the country.
The introduction of data benchmarking institutes for InvITs by SEBI and the Bharat InvIT Association marks a significant step towards enhancing transparency and investor confidence in the sector. Given the success of similar initiatives for REITs, the potential linkage between REIT and InvIT platforms could further streamline investor access to information, fostering a more robust investment environment for infrastructure assets.
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