Regulatory notice

Pakistan's framework for fractional real estate is still developing. There is no single dedicated licence for fractional real estate today. ReptoState operates under existing private-limited shareholding rules established by the Companies Act and overseen by the Securities and Exchange Commission of Pakistan (SECP).

ReptoState is pursuing the following regulatory track: {{ FOUNDER: regulator_track }}.

Application status: {{ FOUNDER: licence_status }}. Licence number (once granted): {{ FOUNDER: licence_number }}.

Possible tracks under consideration include SECP Private Funds regulations, Modaraba structures, or operating in partnership with a licensed Asset Management Company. The final choice and supporting agreements will be disclosed here before any retail investment is accepted.

No SPV has been incorporated yet at the time of writing. Once a property completes review, each property is held by its own dedicated Private Limited company (SPV) registered with SECP. Investors hold shares (represented as "blocks" in the UI) in the SPV that owns the property — not a raw deposit with ReptoState.

The intended flow looks like this:

   Investor ───►  ReptoState platform (front-end + KYC)
                              │
                              ▼
                    ReptoState (Pvt) Ltd ────►  collects investor funds
                              │                  in segregated client account
                              ▼
                  ┌──── per-property SPV ────┐
                  │  e.g. "DHA Phase 6        │
                  │   Residency (Pvt) Ltd"    │
                  │   — registered with SECP  │
                  │   — owns the property     │
                  │   — collects the rent     │
                  └───────────────────────────┘
                              │
                              ▼
                    Net rent distributed
                    to share-holders (block-holders)
              

Block transfers are recorded as share transfers in the SPV's company register. The register is the legal source of truth — the on-platform balance mirrors it.

We engage proactively with: SECP (corporate structure, fractional real estate framework), State Bank of Pakistan (foreign-exchange, remittance and payment flows), and the Federal Board of Revenue (taxation and investor tax statements).

As fractional real estate-specific regulation emerges in Pakistan, we expect to adapt to it ahead of the deadline. We will not pre-empt regulations that do not yet exist (e.g. blockchain-based ownership claims) until clear guidance is published.

Even without a specific fractional real estate framework, we plan to apply investor protections beyond the minimum — segregated client funds, per-property SPV, maker-checker controls on financial actions, audit logs of admin actions, and independent legal and valuation verification.

For regulatory enquiries, please contact legal@reptostate.com.