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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.

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