SEBI to regulate providers of fractional ownership in real estate
ECONOMY & POLICY

SEBI to regulate providers of fractional ownership in real estate

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.

See also:
SEBI introduces new regulatory framework for depository receipts
Infrastructure financing to evolve with new initiatives


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. See also: SEBI introduces new regulatory framework for depository receiptsInfrastructure financing to evolve with new initiatives

Next Story
Infrastructure Urban

GST Bachat Utsav Showcases Nationwide Relief and Growth Momentum

Union Ministers Nirmala Sitharaman, Piyush Goyal, and Ashwini Vaishnaw jointly addressed a press conference in New Delhi on the GST Bachat Utsav, underscoring the far-reaching benefits of the Next-Generation GST reforms implemented ahead of Diwali.Finance Minister Nirmala Sitharaman announced that the revised GST rates—effective from the first day of Navratri—have simplified compliance by reducing slabs from four to two and ensuring greater benefits to consumers. The Finance Ministry is closely tracking 54 essential items to confirm that the lower tax rates are being passed on fully to end..

Next Story
Infrastructure Transport

Indian Railways Operates 12,000 Special Trains for Festive Rush

Union Minister for Railways, Information & Broadcasting, and Electronics & Information Technology, Ashwini Vaishnaw, reviewed passenger movement at the Railway Board War Room and appreciated staff for their round-the-clock efforts during the festive season. He extended Diwali greetings to railway personnel across the country.To meet the surge in travel demand during Puja, Diwali, and Chhath, Indian Railways has deployed 12,011 special trains—up from 7,724 last year—ensuring smooth and comfortable travel for passengers nationwide. Between 1 and 19 October 2025, 3,960 special..

Next Story
Infrastructure Urban

TRAI Evaluates Mobile Network Quality Across Assam Districts

The Telecom Regulatory Authority of India (TRAI) has released its Independent Drive Test (IDT) report for the Assam Licensed Service Area, evaluating network performance across Silchar city and Hailakandi and Karimganj districts. Conducted between 18 and 22 August 2025, the tests covered 284 km of city routes, 10 hotspot locations, and 2.4 km of walk tests.The assessment, supervised by the TRAI Regional Office, Kolkata, examined real-world service quality across 2G, 3G, 4G, and 5G technologies in both urban and rural zones. Key parameters included call setup success rate, drop call rate, laten..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?