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SEBI notified the regulations for small and medium real estate investment trusts

Published on March 13, 2024
Current Context: The Securities and Exchange Board of India (SEBI) has indeed issued regulations to amend the REIT Regulations 2014.
SEBI notified the regulations for small and medium real estate investment trusts
  • These amendments establish guidelines for the creation of Small and Medium Real Estate Investment Trusts (SM REITs).
  • The new regulations, known as the SEBI (REIT) (Amendment) Regulations 2024, will come into force on the date of their publication in the official gazette.
  • Under these regulations, an SM REIT will be permitted to gather funds starting from ₹50 crore by issuing units to a minimum of 200 investors.
  • These funds will be utilized for acquiring and managing real estate assets or properties.
  • The amendments are expected to open the doors to fractional ownership of rent-yielding real estate assets, including uber-luxury second homes across the country.
  • This is a significant move to regulate the fractional ownership industry.
  • It’s important to note that at least 95% of the assets for SM REIT schemes must be fully developed and generating revenue, compared to the 80% requirement for larger REITs.
  • These regulations are aimed at expanding investment opportunities and regulating the real estate sector more effectively.


Q.1 What is the minimum number of investors to whom an small and medium real estate investment trusts (SM REIT) can issue units?
a. 100
b. 400
c. 300
d. 200
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