Fractional Ownership Platforms Embrace SM-REIT Rules
ECONOMY & POLICY

Fractional Ownership Platforms Embrace SM-REIT Rules

Fractional ownership platforms in India are undergoing registration under the Securities Market Real Estate Investment Trusts (SM-REIT) regulations, signalling a move towards regulatory compliance and transparency in the commercial real estate domain. This transition aims to bolster investor confidence and broaden participation in fractional ownership ventures.

The adoption of SM-REIT regulations entails fractional ownership platforms adhering to oversight by the Securities and Exchange Board of India (SEBI), ensuring adherence to governance, disclosure, and investor protection standards. This alignment seeks to instil trust among investors and foster fractional ownership as a viable investment avenue in the Indian real estate market.

Fractional ownership enables investors to acquire stakes in high-value commercial properties, such as office buildings and retail spaces, without substantial capital investment. This democratises real estate access, allowing individuals to diversify portfolios and potentially earn passive income through rental yields and capital appreciation.

Under SM-REIT regulations, platforms must meet criteria including financial reporting, disclosure, and governance norms, enhancing transparency and accountability within the sector. Compliance with these standards is expected to strengthen investor protection and foster trust in fractional ownership platforms.

The adoption of SM-REIT regulations signifies a broader trend towards regulatory compliance and institutionalisation within India's real estate market. This shift is poised to stimulate growth in fractional ownership, unlocking new investment avenues and driving innovation in the commercial property landscape.

Fractional ownership platforms in India are undergoing registration under the Securities Market Real Estate Investment Trusts (SM-REIT) regulations, signalling a move towards regulatory compliance and transparency in the commercial real estate domain. This transition aims to bolster investor confidence and broaden participation in fractional ownership ventures. The adoption of SM-REIT regulations entails fractional ownership platforms adhering to oversight by the Securities and Exchange Board of India (SEBI), ensuring adherence to governance, disclosure, and investor protection standards. This alignment seeks to instil trust among investors and foster fractional ownership as a viable investment avenue in the Indian real estate market. Fractional ownership enables investors to acquire stakes in high-value commercial properties, such as office buildings and retail spaces, without substantial capital investment. This democratises real estate access, allowing individuals to diversify portfolios and potentially earn passive income through rental yields and capital appreciation. Under SM-REIT regulations, platforms must meet criteria including financial reporting, disclosure, and governance norms, enhancing transparency and accountability within the sector. Compliance with these standards is expected to strengthen investor protection and foster trust in fractional ownership platforms. The adoption of SM-REIT regulations signifies a broader trend towards regulatory compliance and institutionalisation within India's real estate market. This shift is poised to stimulate growth in fractional ownership, unlocking new investment avenues and driving innovation in the commercial property landscape.

Next Story
Infrastructure Energy

Mizoram To Build Rs 139 Billion Pumped Storage Power Plant

Mizoram Chief Minister Lalduhoma on Friday announced plans to construct a 2,400 MW pumped storage hydroelectric power plant in Hnahthial district, marking a major step towards achieving energy self-sufficiency in the state. Addressing the Mizo Students’ Union general conference in Hnahthial town, the Chief Minister said the plant would be developed across the Darzo Nallah, a tributary of the Tuipui river. Once operational, the project is expected to play a pivotal role in meeting Mizoram’s rising electricity demand and reducing dependence on imported power. Officials from the State Power..

Next Story
Infrastructure Energy

Centre Plans Nationwide Opening Of Power Retail Market

India is preparing to open up its retail electricity market to private companies nationwide, effectively ending the long-standing monopoly of state-run power distributors in most regions, according to a draft bill released by the Union Power Ministry on Friday. The move will enable major private sector players — including Adani Enterprises, Tata Power, Torrent Power, and CESC — to expand their presence across the country’s electricity distribution landscape. A similar reform attempt in 2022 had faced strong opposition from state-run distribution companies (discoms), which currently dom..

Next Story
Infrastructure Energy

CEA Sets 100 GW Nuclear Target For India By 2047

In a landmark step marking its 52nd Foundation Day, the Central Electricity Authority (CEA) unveiled an ambitious roadmap to develop 100 gigawatts (GW) of nuclear power capacity by 2047, aligning with India’s long-term Net-Zero commitment and energy security objectives. The event, held at the Central Water Commission auditorium in New Delhi’s R.K. Puram, was attended by Pankaj Agarwal, Secretary, Ministry of Power, who served as the Chief Guest. The roadmap sets out a detailed plan to expand India’s nuclear capacity from its current level of approximately 8,180 MW as of early 2025, outl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?