Strata SM REIT, which had received a license from the Securities and Exchange Board of India (SEBI) to operate as a Small and Medium Real Estate Investment Trust, has had its surrender application accepted by the market regulator. SEBI’s decision to accept the surrender follows certain news reports and a review of legal proceedings against the promoter of Strata SM REIT. The company, which aimed to facilitate investments in commercial real estate with a lower entry barrier compared to traditional REITs, had not launched any SM REIT schemes or migrated any existing fractional real estate entities under the SM REIT framework prior to the surrender. Consequently, Strata SM REIT will no longer be permitted to present itself as a SEBI-regulated intermediary or SM REIT, and SEBI has advised investors to exercise caution while dealing with the entity.
Securities Exchange Board of India
PR No.25/2025
Caution to investors
SEBI accepts surrender application of Strata SM REIT
Pursuant to certain news reports and review of certain legal proceedings against the promoter of a SEBI registered SM REIT, namely Strata SM REIT having Registration Number IN/SM-REIT/24-25/0004 in terms of SEBI (Real Estate Investment Trusts) Regulations (‘REIT Regulations’), SEBI engaged with Strata SM REIT, its independent director, compliance and other officers and the trustee.
Basis the engagement and discussions thereat, 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 RE IT.
This communication is being issued in the interest of investors advising them to exercise caution while dealing with the entity.
It may be noted that Strata SM REIT has, as on date, not launched any SM REIT Schemes nor migrated any pre-existing fractional real estate entities as a SM REIT Scheme.
Mumbai
May 14, 2025
