SEBI new rule on Small and Medium Real Estate Investment Trusts…
India’s way of investing in real estate might soon undergo a big change. The Securities and Exchange Board of India (SEBI) recently introduced the idea of Small and Medium Real Estate Investment Trusts (SM REITs). Although SEBI says it’s not necessary for existing real estate owners to switch to this new method, most of them are interested in making the change.
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Sebi’s New Rule: Who Can Join SM REITs?
SEBI, which regulates the market, has allowed real estate platforms with assets of at least ~50 crore to be part of the SM REIT concept. The Chairperson of SEBI, Madhabi Puri Buch, made it clear that companies currently working in their own structures don’t have to switch to the new system if they don’t want to.
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Why Players Are Considering the Change – SEBI new rule on Small and Medium Real Estate Investment Trusts
Even though moving to SM REITs isn’t mandatory, many in the industry are thinking about it. They believe it could help them reach more people interested in investing and could also make the process cheaper. SEBI mentioned a minimum subscription of ~10 lakh for SM REITs, which is a lot less than the usual ~25 lakh minimum investment in most places. And SEBI might even reduce this minimum subscription more in the future. SEBI’s supervision will make things more transparent and organized. Also, a lower minimum investment will make it easier for more people to join in.
This shift is not just about following new rules. It might change how real estate investments work in India. It could create a bigger system involving brokers, advisors, and others. [SEBI new rule on Small and Medium Real Estate Investment Trusts]
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Experts also noted the benefits of SEBI permitting the creation of separate schemes for real estate ownership through Special Purpose Vehicles, highlighting the advantages of smoother and more cost-effective unit transfers.
Disclaimer:
The above content provided regarding SEBI new rule on Small and Medium Real Estate Investment Trusts in this web post is for informational purposes only and should not be construed as financial advice. Readers are encouraged to consult with financial professionals before making any significant financial decisions.
