Fractional ownership platforms start registering under new SEBI regulations
Fractional ownership platforms have started the process of registering under SM REIT regulations, a month after Securities and Exchange Board of India (SEBI) notified these rules to govern small and medium real estate investment trusts (SM REITs) of income-generating and completed properties including commercial assets, rental housing, warehousing, and hotels.
Integrated co-working firm EFC (I) Ltd plans to form an investment manager entity to manage assets and investments of SM REIT through a wholly owned subsidiary EFC Ltd. Others like Strata and WiseX are also taking similar steps.
“With Sebi notifying amended regulations for SM REITs, investors can now have ownership of rent-yielding real estate assets by making a minimum investment of Rs 10 lakh. The move will help enhance transparency and boost participation of both domestic and foreign retail investors thereby leading to better liquidity in the market,” said Umesh Sahay, founder & CEO, EFC (I) Ltd.
The company’s board has approved a proposal to create a step-down subsidiary under EFC Ltd for acting as an investment manager to SM REIT.
EFC REIT is being incorporated and an application is expected to be filed with Sebi in 3-4 months.
Aryaman Vir, CEO, WiseX, another such platform, said it plans to register under SM REIT regulations in the coming months.
“We are working closely with legal & tax advisors, merchant banker and Sebi to work out the operational requirements of the regulations, apply for the registration of the license as well as migration of the
