The Head and Tale Impact: Strata surrenders SM-REIT licence; SEBI warns investors
14 May 2025, 10:10 AMSebi has issued a cautionary note to investors after accepting the surrender of registration by Strata SM-REIT.
Arti Singh
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In a rare move, the Securities and Exchange Board of India (SEBI) has issued a cautionary note to investors after accepting the surrender of registration of SM-REIT licence by real-estate fractional ownership platform, Strata.
The surrender follows SEBI’s internal review and engagement with the entity’s management, independent director, compliance officers, and trustee -- triggered by recent news reports and ongoing legal proceedings against the firm’s promoter.
Strata SM REIT (Registration No. IN/SM-REIT/24-25/0004) has been directed not to represent itself as a SEBI-regulated intermediary going forward. SEBI also clarified that the entity has not launched any SM REIT schemes nor migrated any existing fractional real estate holdings under the regulatory framework.
"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," the market regulator said in its notification.
This development comes amid rising scrutiny of the fractional ownership real estate sector.
The Head and Tale has been at the forefront of reporting on Strata. Just last week, we broke the news of the Madras High Court granting bail to Strata founder Sudarshan Lodha in an alleged impersonation case. In February, we published a detailed report on Strata’s ongoing dispute with warehouse developer Avigna, which included allegations of someone impersonating a SEBI official.
We will continue to report updates on this developing story.
The author is Founder and Editor of The Head and Tale. She can be reached at
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