SEBI Bringing Significant Transformation to Fractional Ownership Industry

The Securities and Exchange Board of India (SEBI), prepared and announced a few decisions, including those related to fractional ownership, with the overarching goal of protecting the interests of investors, its board meeting on Saturday.

This step was taken to keep an eye on the real estate fractional ownership segment, which the industry experts termed as a ‘positive and necessary step’.

Founder and CEO at ALYF, which is India’s first technology-enabled marketplace that makes holiday home ownership commercially accessible through its smart ownership model, Mr. Saurabh Vohara congratulated this stringent step of SEBI for enhancing transparency, investor security, liquidity, and seamless exit options within the fractional ownership realm.

Vohara further quoted, "This move holds the potential to create a dual positive impact: formalising fractional ownership as an investment class, thereby attracting a segment of portfolios towards a larger market, and fostering the supply of hospitality assets to meet the escalating demand in the travel and hospitality sectors."

Founder and CEO of YOURS, a platform for fractional ownership of luxury second homes, Shravan Gupta said, this strong move signifies the strengthening of the segment and reflects increasing demand from investors.

He further quoted, “The guidelines proposed by SEBI are crucial for formalizing the sector, instilling investor faith, and addressing the complexity of Special Purpose Vehicle (SPV) securities issuances. Particularly beneficial for retail investors unfamiliar with such structures, the regulation is anticipated to contribute to the growth and acceptance of this innovative form of property ownership, aligning with established practices in developed nations.”