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SEBI Issues License to Strata for SM REIT Approval.

Banking & Finance | Dated: 13 Jan 2025

On January 9, 2025, the Securities and Exchange Board of India (SEBI) granted a license to Bengaluru (Karnataka)-based Strata Capital Management Private Limited (SCMPL), a leading real estate fractional ownership platform, for its Small and Medium Real Estate Investment Trust (SM REIT), named Strata SM REIT.

🎯 Key Highlights:

  • - This marks SEBI's fourth license for SM REITs, following approvals granted to Property Share, Rudrabhishek Enterprises Limited (REPL), and Emberstone.
  • - Strata Capital will act as the Investment Manager for the SM REIT, while Axis Trustee will function as the trustee.
  • - Strata SM REIT offers retail and institutional investors an opportunity to invest in premium commercial properties located in key areas, simplifying real estate investments.

💡 Other Important Facts:

  • (i) The initiative ensures transparency, safeguards investors, and adheres to SEBI's regulatory framework to provide a structured and regulated investment model.
  • (ii) Strata SM REIT supports SEBI’s vision for secure fractional ownership, with plans to list Rs. 2,000 crore in assets and launch up to six schemes by FY 2025-26, offering accessible commercial real estate investments.
  • (iii) Small and Medium Real Estate Investment Trusts (SM REITs), introduced by SEBI in March 2024, allow individual investors to invest in properties like offices, hotels, and malls with lower capital requirements, encouraging broader participation in real estate.

📚 Test Your Knowledge:

Which organization recently granted a license to Strata Capital Management for SM REIT?

Correct Answer: SEBI

🚀 Quick Recap:

About SEBI

  • Chairperson : Madhabi Puri Buch
  • Headquarter : Mumbai