SEBI to regulate providers of fractional ownership in real estate

16 May 2023 CW Team

To protect small investors, the Securities and Exchange Board of India (SEBI) has proposed regulating all online platforms that offer fractional ownership of real estate assets.

Typically, the term "fractional ownership" refers to modest investment stakes in real estate. In the past three years, a variety of web-based platforms have exploded, enabling investors to invest in buildings, warehouses, malls, and other real estate.

On these platforms, the minimum investment normally ranges from Rs 100,000 to 250,000.

“The lack of standard, uniform selling practices and lack of independent valuation, or of diligence of information or materials provided to potential investors could result in investors falling prey to mis-selling,” said SEBI, the nation’s market regulator, in the discussion paper.

Typically, a discussion paper is the first step before SEBI develops new regulations.

The regulatory body suggested that these platforms register under the Regulatory Framework for Micro, Small, and Medium REITs, where they would need to have independent trustees, sponsors, and investment managers.

According to the regulation, the net worth requirements for the sponsor and investment manager are 20 million rupees and 10 million rupees, respectively.

According to SEBI in the discussion paper, the underlying real estate assets offered on these platforms are comparable to the real estate or property described in the REIT Regulations.

Such fractional ownership has been available in markets like the United States and the United Arab Emirates since 2015.

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..

EUROBOND Expands NABL Accreditation to 51 Testing Parameters

EUROBOND, the flagship brand of Euro Panel Products, has expanded the National Accreditation Board for Testing and Calibration Laboratories (NABL) accreditation of its in-house laboratory from 16 to 51 mechanical and chemical testing parameters, making it the only Indian aluminium composite panel (ACP) manufacturer with accreditation covering such an extensive testing scope.The expanded accreditation enables the company to independently test coils, coatings, cores, aluminium composite panels (ACP) and metal composite panels (MCP) in accordance with international standards, including IS, ASTM, ..