SEBI Introduces MSM REITs To Change India’s Real Estate Landscape

Securities and Exchange Board of India (SEBI) plans to introduce a new plan MSM REITs plan which will provide investors with a unique proposition to participate in the commercial real estate market and improve global investments. This move will also ensure transparency, control, and credibility for investors. Real Estate Investment Trusts (REITs) have been a game-changer in the global investment landscape, providing investors with a unique proposition to participate in the commercial real estate market. SEBI is now introducing the model to increase investment flow in India as well. The minimum ticket size will be Rs10 lakhs promising to provide accessibility to retail investors while maintaining a certain level of sophistication.

MSM REITs would maintain the core structure of traditional REITs, comprising a Trustee, Sponsor/sponsor group, investment manager, and investors as primary stakeholders. Notably, in these MSM REITs, the Investment Manager and Sponsor can be the same entity.