Real Estate Investment Trusts (REITs) own and operate income-producing real estate. They offer investors an opportunity to invest in real estate without having to buy, manage, or finance individual properties. REITs are listed on stock exchanges and trade like stocks.
SM REITs are a new type of REIT that has been created by the Securities and Exchange Board of India (Sebi). SM REITs have a smaller asset value than traditional REITs, with a minimum asset value of Rs 50 crore versus the current minimum asset value of Rs 500 crore for existing REITs.
SM REITs offer a number of benefits to investors, including:
SM REITs are also subject to a number of risks, including:
Sebi has approved a new regulatory framework for SM REITs that is designed to protect investors and promote the development of the SM REIT market. The new framework includes the following provisions:
The new regulatory framework for SM REITs is a positive development that is likely to boost the growth of the SM REIT market. SM REITs offer a number of potential benefits to investors, including lower investment minimums, diversification, and liquidity. However, investors should also be aware of the risks associated with SM REITs, such as their smaller size, limited track record, and higher fees.
Overall, the new regulatory framework is a good step forward for the development of the SM REIT market. However, it is important to remember that SM REITs are a new type of investment and there is a limited track record to assess their performance. Investors should carefully consider their investment objectives and risk tolerance before investing in SM REITs.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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