The Securities and Exchange Board of India (SEBI) has cautioned investors about dealing with Strata Small and Medium Real Estate Investment Trust (SM REIT), as it has surrendered its SEBI registration.

The market regulator came to this decision after reviewing certain legal proceedings against the promoter of Strata SM REIT. The regulator held discussions with the company, its independent director, compliance officers, and the trustee.

“Based on the engagement and discussions thereafter, Strata SM REIT has surrendered its certificate of registration as an SM REIT and will not hold out or represent itself as a SEBI regulated intermediary or SM REIT,” the regulator said in a press release.

“This communication is being issued in the interest of investors advising them to exercise caution while dealing with the entity,” SEBI said.

In January, Strata received SEBI’s approval to register as a Small and Medium Real Estate Investment Trust (SM REIT), a framework for smaller fractional ownership platforms offering real estate investment products.

It has not launched any SM REIT schemes nor migrated any pre-existing fractional real estate entities to the SM REIT framework, but had planned to launch six schemes in FY26.

Currently, Strata manages over ₹2,000 crore in assets under management (AUM). As per the norms introduced in 2024, the minimum investment for SM REITs is set at ₹10 lakh.

Published on May 14, 2025