SEBI to Launch New Institutions to Enhance Securities Market Information

SEBI is planning to establish two new institutions, the Performance Validation Agency and the Data Benchmarking Institution, aimed at improving the quality of information provided to investors in the securities market. These steps, along with several other proposed initiatives, are expected to better the regulatory framework and support infrastructure and real estate growth.

The Securities and Exchange Board of India (SEBI) is set to introduce two new institutions, the Performance Validation Agency and the Data Benchmarking Institution, with the objective of enhancing the quality of information presented to investors within the securities market.

The first of these, the Performance Validation Agency, will focus on verifying performance claims of services provided by Investment Advisors, Research Analysts, and Algo providers. Meanwhile, the Data Benchmarking Institution will serve as a central repository for standardized and comparable data related to various asset classes.

These measures are part of SEBI's broader efforts to improve regulatory frameworks, which also include establishing a closed ecosystem for fee collection by registered Investment Advisors and Research Analysts. Looking ahead to 2024-25, SEBI aims to focus on capital formation in real estate and infrastructure sectors and has set up advisory committees and proposed customized regulations to cater to specific market needs and facilitate sectoral growth.