Market regulator Sebi has decided to promote investment through small and medium REITs (SM REITs). The Sebi board on Saturday approved amendments to the REIT (Real Estate Investment Trusts) Regulations, 2014 to create a regulatory framework to facilitate at least asset value SM REITs. INR$50 billion against minimum asset value INR$500 million to existing REITs. The decision was approved at the Securities and Exchange Board of India (Sebi) board meeting held in Mumbai.
Industry experts welcomed Sebi’s decision to regulate the fractional ownership real estate market. Aryaman Vir, his CEO of WiseX, said: “As a pioneer of fractional ownership model and neo-realty investments in India, he applauds SEBI’s progressive move to regulate the fractional ownership framework through amendments to REIT regulations.
Sebi Chairman Madhavi Puri Buch said the objective of small real estate investment trusts is to help expand the market significantly so that more individual investors can have fractional ownership of REIT units. . He also said regulators are open to considering further development of such products.
The CEO of WiseX said SEBI deserves praise for recognizing the growing trend of fractional ownership platforms and extending its regulatory oversight.
“We believe this will not only increase investor interest in the real estate sector, but also ensure investor protection, common disclosure practices and robust redress mechanisms,” he added.
Vir added: INR$50 billion in small and medium-sized REITs presents an exciting opportunity for investors seeking a more accessible entry point to real estate ownership. SM REIT’s ability to create individual schemes increases flexibility and innovation in building a real estate portfolio. We expect these regulatory changes to have a positive impact on the fractional ownership ecosystem and promote inclusivity and diversification in real estate investing. ”
Disclaimer: The views and recommendations expressed above are those of individual analysts and not of Mint. We recommend checking with a certified professional before making any investment decisions.
– With agency input
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