Fractional ownership platforms for real estate seek lower holding threshold

Also seek exposure to under-construction projects; Sebi to formalise framework soon

Fractional ownership platforms (FOPs) for real estate are seeking a lower shareholding threshold for sponsors, as well as grandfathering of ongoing investments and permission to continue investing in under-construction projects.

This demand arises following a consultation paper floated by the Securities and Exchange Board of India (Sebi) in May. Sebi is expected to formalise a framework soon to regulate the mushrooming of web-based FOP platforms.

The fractional ownership model enables investors to own a small percentage or fraction of real estate assets, such as buildings, office spaces, warehouses, shopping centres, and conference centres.

Although the industry welcomes the move towards