Sebi nod for small, medium REITs to boost investments and liquidity

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Key Points

The Securities and Exchange Board of India (Sebi) decision to create a regulatory framework for the facilitation of small and medium real estate investment trusts (SM REITs) is expected to boost participation of retail investors, institutionalise the segment, and encourage greater capital influx from both domestic and offshore investors...

This initiative is anticipated to provide crucial support to realty developers, offering an additional avenue to monetize assets and infuse much-needed liquidity into the sector...

"With the approval of Micro-REIT guidelines, finally we will soon have a new asset class available to investors to provide secured and stable returns even in a small real estate asset as low as Rs 50 crore," said Anuranjan Mohnot, MD, Lumos Alternate Investment Advisors...

According to him, the new regulation has provided more clarity on the regulatory framework for raising money from the public at large outside Alternate Investment Fund (AIF) with due accountability and skin of the investment manager in the entire scheme...

The guidelines will be beneficial for retail investors unfamiliar with such structures and the regulation is anticipated to contribute to the growth and acceptance of this form of property ownership, aligning with established practices in developed nations," said Shravan Gupta, founder and CEO of YOURS, platform for fractional ownership of luxury second homes...

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