The Securities and Exchange Board of India (SEBI) is warning investors to steer clear of Strata Small and Medium Real Estate Investment Trust (SM REIT) due to its recent surrender of SEBI registration. The decision came after SEBI reviewed legal issues involving the promoter of Strata SM REIT. Following discussions with the company, its independent director, compliance officers, and the trustee, Strata SM REIT decided to surrender its registration certificate and cease presenting itself as a SEBI-regulated intermediary or SM REIT, as stated in a press release by the regulator.
In a move to protect investors, SEBI emphasized the need for caution when engaging with Strata SM REIT. The company had previously received approval from SEBI in January to operate as an SM REIT, a platform for fractional real estate investment products. Despite having plans to launch six schemes in FY26, Strata has not yet introduced any SM REIT schemes or migrated existing fractional real estate entities to the new framework. With assets under management (AUM) exceeding ₹2,000 crore, Strata is subject to the minimum investment requirement of ₹10 lakh set for SM REITs under the 2024 regulations.
Not really sure why this matters, but it looks like SEBI is cracking down on Strata SM REIT for some legal stuff involving the promoter. After chatting with the company and its peeps, Strata decided to give up its SM REIT registration and stop pretending to be regulated by SEBI. SEBI is basically telling investors to be careful dealing with Strata SM REIT, which had big plans to launch some schemes but hasn’t actually done anything yet. With over ₹2,000 crore in AUM, Strata was all set to roll out new offerings, but now things seem to be on hold.
Maybe it’s just me, but it seems like Strata got in some hot water with SEBI, and now they’re backing out of the whole SM REIT scene. Investors are being told to watch out when messing with Strata SM REIT, even though they haven’t really done much yet. It’s like they had these grand plans to launch all these schemes, but now everything’s up in the air. With a hefty AUM of over ₹2,000 crore, Strata was gearing up for a big move, but now it’s all up in the air.