The Securities and Exchange Board of India (Sebi) has put forth a proposal to establish regulations for fractional ownership platforms that offer investments in real estate assets. This move aims to bring transparency and accountability to this emerging sector, ensuring the protection of investor interests. Here’s what you need to know about Sebi’s proposed norms.
Fractional ownership platforms allow individuals to invest in real estate properties by purchasing fractional shares. While this concept opens up investment opportunities and provides access to a traditionally inaccessible market, it also raises concerns regarding investor protection, regulatory oversight, and market integrity.
Sebi’s proposed regulations seek to address these concerns. The norms would require fractional ownership platforms to obtain registration as market intermediaries and adhere to certain disclosure and compliance requirements. This includes providing detailed information about the underlying assets, risk factors, and financials of the properties being offered for investment.
The proposed regulations aim to bring the fractional ownership platforms under the purview of Sebi’s regulatory framework, providing greater transparency and protection to investors. The move is expected to enhance investor confidence and foster the development of a robust and trustworthy market for fractional ownership in real estate.
Additionally, the proposed norms would also establish mechanisms for resolving disputes, handling grievances, and conducting audits of the platforms. This would further ensure that investor interests are safeguarded and any misconduct or malpractices are appropriately addressed.
Sebi’s proactive approach in proposing regulations for fractional ownership platforms offering real estate assets reflects the regulator’s commitment to fostering fair and regulated investment avenues. By setting clear guidelines and enforcing compliance, Sebi aims to promote a secure and transparent environment for investors while encouraging the growth of innovative investment models in the real estate sector.
As the proposed norms undergo further deliberation and public consultation, stakeholders and investors alike eagerly await the final regulations, which have the potential to shape the future of fractional ownership in real estate and protect the interests of all participants in this evolving market.
