The SEBI – the market monitoring agency – has proposed to introduce several proposals to regulate the web-based platforms that offer partial management in the real estate sector. To safeguard the interest of small investors, the SEBI has initiated the proposals. The partial management pertains to holding minor shares in real estate properties. There was a mushrooming growth of the websites that offer partial management which promote investments in malls, buildings, and warehouses. The investment range would be between Rs 10 and Rs 25 lakh. The SEBI has expressed concern over the investors getting duped. In this backdrop, the SEBI has proposed to register them under micro or small or medium REITs.
Accordingly, these will be proposed to be labelled as MSM REITs to bring them under its regulatory authority. The proposed MSM REIT would have trustees, sponsors, investment manager and so on. The arrangement should have parties like trustees, sponsors, investment managers and so on. Each individual should represent a special entity. The gross value of the sponsor is Rs 20 crore while that of the investment manager should be Rs 10 crore.
