Fractional Real Estate Ownership:
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
The Institutionalization of Fractional Property Assets
Fractional ownership platforms have allowed retail investors to buy shares of premium commercial properties. To protect retail capital, SEBI has brought these structures under formal regulation using Small and Medium REITs (SM REITs).
What are SM REITs under SEBI regulations?
SM REITs are regulated structures that allow fractional ownership of real estate assets with a minimum asset size of ₹50 crores and a minimum ticket size of ₹10 lakhs, offering retail investors rental income under SEBI oversight.
Key Compliance Protections
Platforms offering fractional ownership must register as SM REITs. The regulations require at least 95% of the assets to be fully completed and rent-generating commercial properties, reducing development risk.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
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