Sebi Aims to Enhance Investor Experience with New Institutions and Regulations
Sebi plans to set up Performance Validation Agency and Data Benchmarking Institution to improve investor information. Get the latest market news and updates.
SebiInvestor ExperienceRegulationsReal EstateInfrastructureReal Estate NewsAug 10, 2024
The Performance Validation Agency will be responsible for validating the claims of performance related to services offered by Investment Advisors (IAs), Research Analysts (RAs), and Algo providers. This move aims to increase transparency and accountability in the investment advisory space.
On the other hand, the Data Benchmarking Institution will provide a central repository of standardized and comparable data related to various asset classes. This will enable investors to make more informed decisions by accessing reliable and consistent data.
In addition to setting up these institutions, Sebi has proposed to create a closed ecosystem for fee collection by registered IAs and RAs. This mechanism will help investors ensure that their payments are reaching only registered entities and avoid unregistered ones.
Sebi has also identified capital formation for real estate and infrastructure sectors as a key focus area for the year 2024-25. To facilitate growth in these sectors, regulations may need to be customized. An advisory committee for real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) has been set up to understand the needs of the market and its stakeholders.
The regulator has emphasized that every segment of infrastructure requires a different solution, and a single set of regulations may not be effective. Customized regulations can facilitate growth in infrastructure and real estate.
Investment in infrastructure is crucial for urban local bodies, and municipal bonds are gaining popularity for fundraising. Sebi has noted that with thoughtful policies, REITs, InvITs, and Municipal Bond markets can grow significantly.
Sebi has planned several initiatives for 2024-25, including a review of voluntary delisting norms and a simplified framework for trades by stock brokers and stock exchanges.
These measures demonstrate Sebi's commitment to enhancing the investor experience and promoting growth in the securities market.
In a bid to improve the quality of information provided to investors, Sebi is setting up two new institutions - Performance Validation Agency and Data Benchmarking Institution. These institutions will help increase transparency and accountability in the investment advisory space and provide reliable data to investors.
Sebi has proposed to create a closed ecosystem for fee collection by registered IAs and RAs. This mechanism will help investors ensure that their payments are reaching only registered entities and avoid unregistered ones.
Sebi has identified capital formation for real estate and infrastructure sectors as a key focus area for the year 2024-25. To facilitate growth in these sectors, regulations may need to be customized.
Investment in infrastructure is crucial for urban local bodies, and municipal bonds are gaining popularity for fundraising. Sebi has noted that with thoughtful policies, REITs, InvITs, and Municipal Bond markets can grow significantly.
Sebi has planned several initiatives for 2024-25, including a review of voluntary delisting norms and a simplified framework for trades by stock brokers and stock exchanges.
Frequently Asked Questions
What are the two new institutions being set up by Sebi?
Performance Validation Agency and Data Benchmarking Institution
What is the purpose of the Performance Validation Agency?
To validate the claims of performance related to services offered by Investment Advisors (IAs), Research Analysts (RAs), and Algo providers
What is the purpose of the Data Benchmarking Institution?
To provide a central repository of standardized and comparable data related to various asset classes
What is Sebi's focus area for the year 2024-25?
Capital formation for real estate and infrastructure sectors
What initiatives has Sebi planned for 2024-25?
Review of voluntary delisting norms, simplified framework for trades by stock brokers and stock exchanges, and others
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