Small and medium REITs will widen realty investor base

03 Jul 2024 CW Team

According to Crisil Ratings, recent rules for small and medium real estate investment trusts (SM REITs) established by the Securities and Exchange Board of India (SEBI) are anticipated to stimulate investor interest in fractional ownership of real estate assets. These restrictions are anticipated to increase the pool of potential investors by providing robust investor protection. The vehicle's popularity will still depend on careful operational risk management, though. Fractional ownership platforms (FOPs) have not adhered to standard operating procedures thus far. The aim of the SEBI action is to tackle this issue by including the current FOPs within the regulatory scope. Forced investments in operational assets, limitations on related party transactions, forced stock market registration, and the transfer of a minimum of 95% surplus from special purpose entities are a few of the main regulatory barriers. Mohit Makhija, senior director at CRISIL Ratings, stated that the regulations for SM REITs aim to bolster investor confidence by addressing two primary risks. Firstly, by restricting investments solely to completed projects, they aim to mitigate risks associated with project completion and leasing. Secondly, measures such as ring-fencing cash flows and mandatory quarterly distributions are expected to reduce the risk of fund diversion. Makhija further noted that these regulations should enhance transparency and governance standards. Additional regulations stipulate a minimum of 200 retail investors to ensure liquidity, along with liquidity requirements at the investment manager (IM) level to manage temporary mismatches. The eligibility criteria tied to experience for IMs are designed to promote robust governance. Anand Kulkarni, director at CRISIL Ratings, commented on the stringent nature of these regulations for SM REITs, highlighting the smaller scale of these schemes and the associated risks of higher asset or geographical concentration compared to traditional REITs. Kulkarni emphasised that the expertise of the IM in property selection and professional management will be crucial for the success of SM REITs. He also stressed the importance of lean cost structures to safeguard investor returns. Investing in SM REITs involves pooling funds from investors for fractional ownership of real estate assets under a trust structure, similar to traditional real estate ownership. Different schemes under the trust specify the assets to be invested in, allowing investors to choose schemes aligned with their investment preferences in specific micro-markets or asset types.

Infrastructure Urban

13 Mar 2026

Implementation Status of Jal Jeevan Mission

Since August 2019 the Government has implemented Jal Jeevan Mission to provide assured potable water through household tap connections in rural India. At the start of the mission only 32.3 million (mn) rural households, representing 16.7 per cent, were reported to have tap water connections. States and union territories have reported that 125.8 mn additional rural households have since been provided with tap connections. As a result, of about 193.6 mn rural households roughly 158.2 mn, or 81.71 per cent, are reported to have tap water supply at home.\n\nThe State, district and village level st..

Jal Jeevan Mission Reaches Eighty One Per Cent Rural Coverage

The Government reported substantial progress under the Jal Jeevan Mission, launched in August 2019 to provide tap water to every rural household. At launch only 32.3 million (mn) rural households had tap connections and states and Union territories reported provision of 125.8 mn additional households by March 2026. Consequently, out of about 193.6 mn rural households around 158.2 mn, or 81.71 per cent, are reported to have tap water at home. The Finance Minister announced extension of the mission until 2028 in the 2025-26 budget speech. The Swachh Bharat Mission Grameen, launched in October 20..

Empowering Local Governance for Sustainable Rural Water Supply

The Ministry of Jal Shakti has aligned the Jal Jeevan Mission (JJM) with the 73rd Amendment to strengthen village level planning and community ownership of water supply. Gram Panchayats, village water and sanitation committees and Pani Samitis are to plan, implement, manage and maintain piped water systems, with gram sabha processes formalising handover and oversight. Implementation support agencies including non government organisations, community based organisations and self help groups have been empanelled to train local committees and promote women participation. Under JJM, the department ..