The Securities and Exchange Board of India (SEBI) introduced regulations for Small and Medium-sized Real Estate Investment Trusts (SM-REITs) to expand access to smaller real estate assets valued between ₹50 and ₹500 crores for retail and institutional investors. Traditional Mainboard REITs have eligibility criteria that typically require assets to exceed ₹500 crores in value.

However, a substantial market exists for income-generating real estate assets below this threshold. SM-REIT regulations facilitate the monetization of these assets through a listed and regulated trust structure, similar to the framework established for Mainboard REITs.

Furthermore, these regulations have brought existing fractional ownership platforms under a more robust regulatory framework, enhancing investor protection and market transparency.