Archive · 10 Aug 2025
SEBI Approves Fractional Shares Test to Broaden Market Access
Xaults, with SEBI's approval, will test fractional shares.
This means investors can buy portions of a share.
The new framework will record the units with depositories.
Experts believe it could make high-value shares accessible to small investors, and help diversify portfolios.
However, current laws don't fully support it, so changes are required to the Companies Act, taxation laws, depository by-laws and SEBI regulations.
This test will also make it easier for investors to participate in the market.
SEBI approved Xaults to test fractional share investing in its innovation sandbox.
The framework will record fractional units directly with depositories like NSDL or CDSL.
Industry players anticipate fractional shares will unlock significant retail capital.
Experts emphasize the need for changes to the Companies Act and SEBI regulations.
The technology showcase will take an estimated 3-5 months.
- Who
- Xaults, SEBI, and potential investors.
- What
- SEBI approved Xaults to test fractional share investing.
- When
- As of August 10, 2025, approval has been granted.
- Where
- India.
- Why
- To make high-value shares accessible to smaller investors and allow for greater portfolio diversification.
Legal and Regulatory Hurdles
Industry Opportunity
Legal Compliance
Legal and Regulatory Hurdles
The Companies Act, 2013 does not permit fractional shareholding and requires change to be fully functional.
Industry Opportunity
Industry players and startups are seeking the necessary changes to facilitate the framework and expand investor accessibility.
- Company
- Xaults
- Regulator
- SEBI
- Focus
- Fractional Share Investing
- Legal Status
- Requires amendments to the Companies Act
- Capital unlock potential
- ₹50,000+ crore by 2030
- Technology showcase timeline
- 3-5 months