Disrupting real estate markets

Sebi need not get into the business of regulating the platforms offering fractional ownership rights in real estate

The consultation paper “Regulatory framework for micro, small & medium REITs (MSM REITs)”, issued by the Securities and Exchange Board of India (Sebi) in May this year, makes for interesting reading. The proposal to encourage fractional ownership in real estate assets under regulatory oversight, if properly structured and implemented, is likely to provide new investment opportunities to a large number of investors, allow secondary market trading in fractional ownership rights, and improve transparency in asset pricing.

The post-Covid period has brought in many long-lasting structural changes in Indian financial markets, the most significant being the increased number of individual investors entering