FOPs slow to migrate under Sebi's new SM REIT norms; few registered

Industry players say lacuna in the newly-introduced platform behind low registrations

Only a handful of fractional ownership platforms (FOPs) have migrated to the new Securities and Exchange Board of India (Sebi) norms for Small and Medium Real Estate Investment Trusts (SM-Reits).

According to the data on market regulator’s website, only one FOP, Property Share Investments, had secured a license, while five more applications were pending, including those from hBits and WiseX as of August 31.

The deadline for migration from FOP to the newly introduced SM-Reit framework — cleared by the Sebi board in November 2023 and notified in March – ended on September 8.

Industry players say the low uptake