Partner, Harish Kumar provides valuable perspectives to Business Standard regarding the regulation of fractional ownership.
In an informative discussion, he highlights the resemblance between fractional ownership and MSM (micro, small, medium) REITs, which are subject to the regulations set by Sebi (Real Estate Investment Trusts).
He further explains that those who can invest Rs 10-25 lakh, but may not have the right guidance regarding the market and the mechanics involved in managing a property, are the kind of investors that invest via these platforms. They view this sector as a lucrative investment. According to him, “the emergence of this model has led to larger public money being involved, with investors ranging from larger to the smaller categories. It has, therefore, become naturally vital for Securities And Exchange Board Of India to regulate such flow of money safeguard interests.”
Further read Harish’s views covered in Financial Express (India) – https://www.financialexpress.com/market/explainer-regulating-fractional-ownership/3098005/