Property Share has become the first fractional ownership platform (FOP) to receive the Small and Medium Real Estate Investment Trust (SM REIT) licence from the Securities and Exchange Board of India (SEBI). The license was granted under the newly notified SM REIT regulations, and the platform will operate under the name Property Share Investment Trust (PSIT), with Property Share serving as the investment manager.
In March 2024, SEBI introduced the SM REIT regulations to bring fractional ownership platforms (FOPs) within a regulatory framework as a subclass of REITs. These regulations apply to assets valued between ₹50 crore and ₹500 crore, and like traditional REITs, SM REITs will be fully regulated by SEBI, with units of each scheme listed on stock exchanges.
Founded in 2016 by IIM Ahmedabad alumni Kunal Moktan and Hashim Khan, Property Share has been a pioneer in fractional ownership in India. The platform serves approximately 300,000 users across more than 20 countries and five continents, according to the company. In June 2022, the company raised ₹347 crore in a Series B round led by WestBridge Capital.
According to Kunal Moktan, Co-Founder of Property Share, a regulated product (real estate investment instrument) comes with significant benefits for investors, including high-net-worth requirements for the investment manager, compliance and reporting standards, transparency, investor protection mechanisms, and marketing restrictions.
SM REITs were introduced by the Indian investment markets regulator SEBI as an entirely new asset class for retail and institutional investors. SEBI has been moving towards better monitoring and regulation of real estate assets, beginning with the REIT regulations in 2014.