As the pioneers of Fractional Ownership model and neo-realty investments in India, we applaud SEBI's progressive move in regulating the fractional ownership framework with the amendments to the REIT Regulations.
As an active contributor since the consultation phase in May 2023, we are delighted to see SEBI move ahead after extensive discussions with the key industry players and users. The regulatory approval addresses the evolving landscape of real estate investments. SEBI's acknowledgement on the growing trend of fractional ownership platforms and extending regulatory oversight is commendable.
We believe that it will not only foster investor interest in the real estate space but also ensure investor protection, common disclosure practices, and a robust redressal mechanism. Further, the lowered minimum asset value of Rs 50 crore for Small and Medium REITs will open exciting opportunities for investors seeking more accessible entry points into real estate ownership.
The ability for SM REITs to create separate schemes enhances flexibility and innovation in structuring real estate portfolios. We look forward to the positive impact these regulatory changes will bring to the fractional ownership ecosystem, promoting more inclusivity and diversification in real estate investments.
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