Does SEBI regulate all fractional real estate platforms in India?

No. SEBI regulates platforms that register as SM REIT Investment Managers and list their scheme units on stock exchanges. Trust/SPV platforms operating under the Indian Trusts Act, 1882 are not SEBI-regulated under the SM REIT framework. However, they are governed by the Indian Trusts Act, 1882, PMLA, 2002, and other applicable laws.

What law governs Trust/SPV fractional real estate platforms?

Trust/SPV fractional platforms operate under the Indian Trusts Act, 1882. Additionally, they must comply with PMLA, 2002 for KYC and AML requirements, and the Income Tax Act, 1961 for tax deductions at source. For platforms using blockchain-based investor certificates, the Indian Evidence Act, 1872, Section 65B also applies.

What documentation proves a fractional investment is legal?

For Trust/SPV investments: a registered Trust Deed confirming the Trust's existence and the Trustee's fiduciary role, plus an SPV NFT certificate recording the investor's profit rights. For SM REIT investments: the SEBI registration confirmation and the scheme offer document. KYC completion certificates confirm PMLA, 2002 compliance.

Is Landbitt's fractional investment structure legal in India?

Yes. Landbitt structures investments through registered Trusts under the Indian Trusts Act, 1882 with independent Trustees holding registered title to each asset. The platform conducts PMLA-compliant KYC and issues SPV NFT certificates structured to comply with Indian Evidence Act, 1872, Section 65B. The investment structure is legally constituted under applicable Indian laws.

Did SEBI's SM REIT framework replace Trust/SPV fractional ownership platforms?

No. SEBI's 2023 amendment to the Real Estate Investment Trusts Regulations created a new SM REIT category for exchange-listed fractional real estate investment. However, it did not regulate or replace Trust/SPV platforms operating under the Indian Trusts Act, 1882. These are parallel structures governed by different laws. Trust/SPV platforms continue to operate lawfully under the Indian Trusts Act framework.

What is the difference between an SM REIT unit and a Trust/SPV profit right?

An SM REIT unit is an exchange-listed security governed by SEBI's Real Estate Investment Trusts Regulations, 2014 (amended 2023). It trades on a stock exchange and carries securities taxation treatment. A Trust/SPV profit right is a contractual instrument governed by the Trust Deed under the Indian Trusts Act, 1882. It does not trade on exchanges and attracts property-based capital gains tax treatment. These are fundamentally different instruments.

Is a Trust/SPV fractional platform SEBI regulated?

No. A Trust/SPV fractional platform operates under the Indian Trusts Act, 1882 and PMLA, 2002 — not under SEBI's SM REIT regulations. However, this does not make it unregulated. Trust law, fiduciary duties, and PMLA compliance govern these platforms. SEBI regulation applies specifically to SM REITs, which are exchange-listed investment vehicles.

What is the capital gains tax on SM REIT units vs Trust/SPV profit rights?

Long-term capital gains on listed SM REIT units are taxed at 10% above ₹1 lakh (without indexation) under Section 112A of the Income Tax Act, 1961. Long-term capital gains on Trust/SPV profit rights (as real property interests) are taxed at 20% with indexation under Section 112. The tax treatment differs between the two models. Investors should verify the exact treatment for their specific investment with a chartered accountant.

Why does Landbitt use the Trust/SPV model instead of becoming an SM REIT?

Landbitt operates under the Trust/SPV model because it allows structuring investments in specific land assets with defined profit rights recorded on-chain via NFT certificates. The independent Trustee holds registered title to each asset in a separately registered Trust, segregated from Landbitt's operating company. This structure allows Landbitt to serve a distinct market segment with lower entry thresholds — starting at 1 sq. ft. or ₹20,000, whichever is higher.

How is rental income from fractional real estate taxed in India?

Rental income distributions from fractional real estate investments are generally taxed as income from house property under Section 22 of the Income Tax Act, 1961. Investors may claim a standard deduction of 30% of net annual value under Section 24. The remaining income is taxed at the investor's applicable slab rate. TDS applies to distributions above prescribed thresholds.

What is the capital gains tax on fractional real estate in India?

Long-term capital gains (on investments held more than 24 months) are taxed at 20% with indexation benefit under Section 112 of the Income Tax Act, 1961. Short-term capital gains (held 24 months or less) are taxed at the investor's applicable income tax slab rate. Holding an investment for more than 24 months significantly reduces the tax rate on gains.

What TDS applies to fractional real estate distributions?

For resident investors, TDS on rental income applies under Section 194I at 10% when annual payments exceed ₹2.4 lakh. For NRI investors, TDS applies at higher rates under Section 195 — generally 30% on rental income unless DTAA relief reduces this. Capital gains distributions to NRIs attract TDS at the applicable capital gains tax rate.

Can I save capital gains tax on fractional real estate exits?

Yes. Long-term capital gains from real estate can be deferred by reinvesting in specified bonds under Section 54EC of the Income Tax Act, 1961. The current investment cap is ₹50 lakh per financial year. Qualifying bonds include those issued by NHAI and REC. Investors with gains up to ₹50 lakh may defer their LTCG tax liability through this route.

What tax documentation does Landbitt provide?

Landbitt provides TDS certificates (Form 16A) to investors for all TDS deducted on distributions. These certificates allow investors to claim TDS credit when filing their annual income tax return. Landbitt maintains distribution records in compliance with Income Tax Act, 1961 requirements. Investors should retain these documents and consult a chartered accountant for their individual tax filing.

Can NRIs invest in fractional real estate in India?

Yes. NRIs can invest in fractional real estate in India under FEMA, 1999 provisions that permit NRI investment in residential and commercial immovable property. The specific FEMA treatment depends on the platform's legal structure — Trust/SPV model or SM REIT — and the type of underlying asset. NRIs should seek independent legal and tax advice before investing.

Which bank account should NRIs use to invest in Indian fractional real estate?

NRIs should use an NRE or NRO account. Funds from an NRE account are fully repatriable (principal and profit can be sent abroad). Funds from an NRO account face repatriation limits of USD 1 million per financial year, subject to tax clearances. The choice of account significantly affects exit planning and should be decided with a tax advisor.

What tax does an NRI pay on fractional real estate investment in India?

NRI investors face TDS on rental distributions and capital gains tax on exits. TDS rates are higher for NRIs — generally 30% on rental income unless DTAA relief applies. Long-term capital gains (held 24+ months) are taxed at 20% with indexation; short-term gains are taxed at slab rates. NRI investors from DTAA partner countries may claim reduced rates with a Tax Residency Certificate.

What is FEMA compliance for NRI real estate investment?

FEMA compliance means that NRI investment in Indian property flows through permissible banking channels (NRE or NRO account), the property type is eligible for NRI investment (residential or commercial, not agricultural land without RBI approval), and the NRI files the required declarations and tax returns in India. Platforms typically require a FEMA compliance declaration from NRI investors.

Does Landbitt accept NRI investors?

Yes. Landbitt accepts NRI investors subject to NRI-specific KYC under PMLA, 2002 and FEMA compliance requirements. NRI investors receive profit rights via an SPV NFT certificate, structured under the Indian Trusts Act, 1882. Landbitt recommends that NRI investors consult an independent FEMA and tax specialist to understand the full implications for their specific situation.

What are the main types of fractional real estate platforms in India?

Indian fractional real estate platforms operate under two main frameworks: SEBI-regulated SM REITs (exchange-listed, governed by SEBI REIT Regulations 2014, amended 2023) and Trust/SPV platforms (governed by the Indian Trusts Act, 1882). These are structurally distinct investment vehicles and should not be treated as equivalent alternatives.

How do I know if a fractional platform has SEBI regulation?

Check SEBI's official website for the list of registered SM REIT Investment Managers. A SEBI-regulated SM REIT will list its scheme units on a recognised stock exchange (NSE or BSE) and must publish offer documents and scheme valuations as SEBI requires.

What is the minimum investment in fractional real estate in India?

Under the Trust/SPV model, the minimum investment is 1 sq. ft. of the property's value or ₹20,000, whichever is higher. SM REIT minimums vary by scheme and appear in the offer document. Always check the specific platform and asset before assuming a minimum applies.

What legal document proves fractional investment in a Trust/SPV platform?

Under the Trust/SPV model, investors receive an SPV NFT certificate — a blockchain-based digital certificate that records profit rights in the specific Trust. This document differs from a share certificate, an equity stake, or a registered title deed. It records a contractual right to profit distributions, not direct or registered ownership.

Is Landbitt an SM REIT?

No. Landbitt operates under the Trust/SPV model governed by the Indian Trusts Act, 1882 — not under SEBI's SM REIT framework. These are structurally different models. Landbitt's investors hold profit rights via SPV NFT certificates, while SM REIT investors hold exchange-listed scheme units.

Fractional Ownership Guide | Investment Comparisons

Landbitt vs PropShare vs hBits vs Strata: A Structure Comparison

landbitt
July 29, 2026

$Visual comparison of LandBitt, PropShare, hBits, and Strata highlighting different fractional real estate investment structures in India.$

Compare Landbitt, PropShare, hBits, and Strata by legal structure, not returns. Covers Trust/SPV vs SM REIT frameworks, investor instruments, asset segregation, and verification questions.

TL;DR: Landbitt, PropShare, hBits, and Strata all offer fractional real estate investment in India, but they operate under different legal structures and regulatory frameworks. Consequently, the comparison that matters most is not about project listings or returns — it is about how each platform legally structures your investment interest, what minimum applies, and how each framework protects your holding. This guide covers those structural differences specifically.

Vijay Singhani is the Founder of Landbitt, an India-based PropTech platform structuring fractional, SPV-based real estate investment. He writes on real estate tokenization, blockchain in property, and structured land investment.

Landbitt vs PropShare vs hBits vs Strata: A Structure Comparison

When investors compare fractional real estate platforms in India, they frequently focus on project types, claimed returns, or marketing materials. However, the most important comparison sits at the structural level: which legal framework does each platform use, how does it hold the underlying asset, and what does the investor actually receive? Therefore, this article examines each platform’s structure — not its listings or projected outcomes.

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Quick Facts

Comparison basis: Legal structure, regulatory framework, investor instrument, and minimum investment. No project-specific or return data appears in this guide.
Two frameworks in play: SEBI SM REIT (exchange-listed) and Trust/SPV model (Indian Trusts Act, 1882). These are distinct instruments with different protections.
Landbitt’s model: Trust/SPV — investors receive profit rights via SPV NFT certificate. Not an SM REIT.
Key distinction: SM REIT units are exchange-listed SEBI-regulated securities. Trust/SPV profit rights are contractual instruments governed by the Indian Trusts Act, 1882.

Why Structure Is the Right Starting Point for Comparison

The Problem with Return-Based Comparisons

Most investor comparisons start with projected returns, portfolio sizes, or minimum investment amounts. While these factors matter operationally, they do not tell you what you legally own or how your rights get protected. Moreover, projected returns are not guaranteed and vary significantly based on market conditions, asset performance, and fee structures. Consequently, a structural comparison gives you the foundation you need before evaluating any operational claims.

What Structural Comparison Covers

A structural comparison examines four things specifically: the legal vehicle that holds the asset, the regulatory framework that governs the platform, the instrument the investor receives, and the minimum investment threshold that applies. Furthermore, it also covers what happens to the investor’s interest if the platform ceases operations — a question that structural analysis answers far better than any return projection.

Framework Overview: Two Models Govern Indian Fractional Platforms

SEBI SM REIT Framework

SEBI introduced the SM REIT category through its 2023 amendments to the Real Estate Investment Trusts Regulations, 2014. Under this framework, platforms must register with SEBI as an Investment Manager and list their scheme units on a recognised stock exchange (NSE or BSE). Additionally, they must comply with ongoing disclosure, valuation, and governance requirements that SEBI mandates. Investors in SM REIT schemes receive exchange-listed units — consequently, these units behave like listed securities and carry the associated market and settlement risks.

Trust/SPV Framework

Under the Trust/SPV framework, the Indian Trusts Act, 1882 governs asset holding. A registered Trust holds the property with an independent Trustee carrying fiduciary responsibility. The platform creates a separate Trust for each asset, and the property registers in the Trust’s name — not the platform company’s name. Investors receive profit rights via an SPV NFT certificate. Importantly, these profit rights are contractual instruments, not equity, shares, or registered title. Moreover, the Indian Trusts Act, 1882, PMLA, 2002, and applicable state land revenue laws govern this model — not SEBI’s SM REIT regulations specifically.

Structural Comparison: Landbitt vs PropShare vs hBits vs Strata

Landbitt

Landbitt structures investments under the Trust/SPV model governed by the Indian Trusts Act, 1882. An independent Trustee holds registered title to each asset in a separate Trust. Investors receive profit rights via an SPV NFT certificate — a blockchain-based digital certificate that records the contractual entitlement on-chain. The minimum investment is 1 sq. ft. of the property’s value or ₹20,000, whichever is higher. Furthermore, the Trust Deed includes successor Trustee provisions, which means investor profit rights persist independently of Landbitt’s operational continuity. Importantly, Landbitt does not operate as an SM REIT and is not exchange-listed.

PropShare

PropShare operates platforms that include both a direct fractional model and a SEBI-registered SM REIT (PropShare Platina). Consequently, PropShare’s investor instrument differs depending on which product the investor selects. The SM REIT scheme issues exchange-listed units governed by SEBI REIT Regulations, 2014 (amended 2023). The direct fractional model operates under a different structure. Therefore, investors should verify which specific vehicle they participate in and review the applicable offer document or Trust Deed accordingly. This guide does not provide specific minimum figures — investors should check current figures in the applicable offer document.

hBits

hBits operates under a fractional model that has evolved over time. As of the time of writing, hBits has pursued SEBI SM REIT registration. Consequently, investors in hBits should verify the current regulatory status of their specific investment and the applicable instrument. Specifically, they should confirm whether their investment falls under an SM REIT scheme (exchange-listed SEBI-regulated units) or a prior fractional model. Moreover, checking current offer documents or Trust Deeds directly with hBits remains the most reliable verification step.

Strata

Strata operates a commercial real estate fractional platform. It previously held an SM REIT registration that is no longer active, so it does not currently operate as a SEBI-registered SM REIT. Investors should verify the regulatory status of any specific Strata product before investing. The SM REIT framework requires exchange listing and SEBI oversight; earlier fractional models operated under SPV or LLP structures. Therefore, investors should confirm which framework governs their specific investment, what instrument they receive, and how the asset holding structure works for that specific product.

Key Structural Comparison Table

Legal Framework

Landbitt: Indian Trusts Act, 1882 (Trust/SPV model)
PropShare (SM REIT scheme): SEBI REIT Regulations 2014 (amended 2023)
hBits: Verify current status — SM REIT registration pursued
Strata: Not currently a SEBI-registered SM REIT — verify before investing

Investor Instrument

Landbitt: SPV NFT certificate (profit rights, not equity or registered title)
SM REIT platforms: Exchange-listed scheme units (SEBI-regulated securities)

Asset Segregation Mechanism

Landbitt: Registered Trust with independent Trustee holds each asset separately
SM REIT platforms: Each scheme forms a separate trust under the SM REIT framework with SEBI oversight

Platform-Exit Protection

Landbitt: Trust Deed includes successor Trustee provision; Trust assets survive platform closure
SM REIT platforms: SEBI regulations govern scheme continuity; listed units provide market exit option

What to Verify Before Investing in Any Platform

Verification Checklist Regardless of Platform

Which legal framework governs this specific investment — SM REIT or Trust/SPV?
Does the asset registration show the Trust or scheme name — not the platform company?
Does the platform provide the Trust Deed, SM REIT offer document, or equivalent legal document?
Has independent legal due diligence been conducted on the underlying asset?
Does the platform comply with PMLA, 2002 KYC/AML requirements?
Does the Trust Deed or scheme document include continuity provisions for exit scenarios?
Do blockchain-based records (if any) comply with Indian Evidence Act, 1872, Section 65B?

Internal Links for Further Research

For a complete walkthrough of platform verification, read our Platform Verification Checklist. To understand the Trust/SPV legal structure in detail, see our guide on SPV in Real Estate Explained. Additionally, our guide on what happens if a fractional platform shuts down covers exit scenarios for both frameworks. For the authoritative source on SM REIT registration, refer to SEBI’s official website.

Frequently Asked Questions

What is the difference between Landbitt and SM REIT platforms like PropShare Platina?

Landbitt operates under the Trust/SPV model governed by the Indian Trusts Act, 1882. Investors receive profit rights via an SPV NFT certificate. SM REIT platforms operate under SEBI’s Real Estate Investment Trusts Regulations (2014, amended 2023) and issue exchange-listed scheme units. These are structurally different instruments with different protections and regulatory frameworks.

Is Landbitt SEBI regulated?

Landbitt operates under the Indian Trusts Act, 1882 and PMLA, 2002. It does not operate as a SEBI SM REIT. The Trust/SPV model and the SM REIT model are different legal structures. Consequently, investors should understand which framework governs their investment before comparing platforms.

What instrument do Landbitt investors receive?

Landbitt investors receive an SPV NFT certificate that records profit rights in the specific Trust holding the asset. This is a contractual instrument — not a share, equity stake, or registered property title. Moreover, the NFT certificate exists on-chain, providing an independently verifiable record that complies with Indian Evidence Act, 1872, Section 65B requirements.

What is PropShare Platina?

PropShare Platina is a SEBI-registered SM REIT that PropShare operates. SM REIT scheme units are exchange-listed securities governed by SEBI’s Real Estate Investment Trusts Regulations, 2014 (amended 2023). Investors in PropShare Platina receive exchange-listed scheme units, which differs structurally from the profit rights that Trust/SPV investors receive.

How do I verify which structure a fractional platform uses?

Ask the platform for its Trust Deed (for Trust/SPV models) or SM REIT offer document (for SEBI-regulated schemes). Furthermore, verify SEBI registration status directly on the SEBI website for SM REIT platforms. For Trust/SPV platforms, check the property registration to confirm the Trust — not the platform company — holds the asset.

Compared the structures — now see Landbitt’s listed properties

Every Landbitt property is held in a registered Trust/SPV. Your interest is documented as profit rights via an SPV NFT certificate — KYC-verified, on-chain recorded, Trust-deed governed.

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Visual comparison of LandBitt, PropShare, hBits, and Strata highlighting different fractional real estate investment structures in India.

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