[ad_1]
Securities and Exchange Board of India ,SEBI) has proposed to regulate all online platforms offering fractional ownership To provide security to small investors of real estate properties.
fractional ownership Generally refers to small investment holdings of real estate properties. Over the past three years, several web-based platforms have emerged that allow investors to invest in malls, warehouses, buildings, etc.
The minimum investment on these platforms usually ranges from Rs 100,000 to Rs 250,000.
“Investors may become victims of mis-selling as a result of a lack of standard, uniform sales practices and a lack of independent evaluation, or due diligence, of information or materials provided to potential investors,” it said. SEBIcountry’s market regulator, in a discussion paper late Friday.
A discussion paper is usually the first step before SEBI frames new regulations.
The regulator proposed that such platforms should be registered under regulatory framework for micro, small and medium REITWhere it should have separate trustees, sponsors and investment managers.
The regulator said the total assets of the sponsor and the investment manager should be Rs 2 crore and Rs 1 crore, respectively.
In the discussion paper, SEBI said that the underlying real estate assets offered on these platforms are the same as immovable property or assets as defined under the REIT Regulations.
Such fractional ownership has existed globally since 2015 in markets such as the United States and the United Arab Emirates.
[ad_2]
Source link