What is TROT?
It is a freely tradable product representing one square ft built-up area in a realty project with an option to buy a realty unit in future on the TROT terms and at a pre-fixed rate
It is a unique realty retail hedge product offering good returns, safety & liquidity.
A person can buy even one TROT product at a time and build his/her stock over a period.
He/she can resale it in the market at any time to liquidate his/her investment
How is it freely tradable?
A TROT unit can be bought and sold just like gold on commodity market or any share or debenture on a share market.
It is traded in d-mat format
Just enter your user name and password and deal in TROT products on-line
Backed by a secured by payment gateway
Who sells TROT products?
Developer of the realty project sales its TROT products
TROT product is backed by certain guarantees and warrantees as per TROT terms
From where do I get TROT products to sale?
TROT products are generated out of saleable built-up areas through an agreement for its sale between the developer and TROT Realty
TROT Realty holds exclusive licence for its Intellectual Property Rights (IPRs - including copyrights and patent rights) for this innovative, first time in the world product introduced in India
How TROT products are priced?
TROT Realty generates offer rate based on certain mechanism.
The developer is free to add premium to it and quote his own rate.
TROT Realty circulate the offer amongst its Trade Partners.
The developer may revise the selling rate depending on the response
Can I quote very high rate for my TROT products?
You are free to quote any rate
Our insurance cover against loss to TROT holders would be available only for the TROT products sold at a system generated maximum selling rate
Comparative analysis with other similar projects is provided for the customers on line
It is your risk of non-sale
Does it mean that I have sold the project’s built-up areas at TROT selling rate?

No
TROT product holder need to pay additional amount as ‘pre-fixed rate’ per built-up ft2 area of the flat/shop/office space he/she wants to buy under the TROT terms
What are the warrantees and guarantees I need to provide?

Regularly up-date the project status
Maintain TROT Floating Stock Level
Maintain TROT Threshold Stock Level
Open and maintain TROT Recall Deposit banking account
Pay compensation on failure to deliver
What is ‘Pre-fixed’ rate?

It is a rate at which the developer is under TROT contractual obligation to sell any flat/shop/office space covered under the TROT terms at a rate specified today.

A TROT holder may ask for delivery of the unit at any time on or after the ‘Buy-date’
‘Buy-date’ is the end date of the TROT period
What is TROT Floating Stock level?
Unsold stocks to be maintained as Floating Stock as provided under the TROT terms
You are free to sale it subject to the deposit conditions
For every sq. ft. shortfall in the floating stock, the developer is required to deposit the pre-fixed compensation amount in the ‘Recall Deposit banking account’
The Floating Stock level is reduced by the corresponding byult0up area for which the deposits are made
What is TROT Threshold Stock level?
Unsold stocks of a category to be maintained as Threshold Stock under the TROT terms
This built-up area can be sold only under the TROT terms to TROT product holders
Unsold Threshold stock is freed and can be sold in the market after the ‘Recall’ date
How long I have to maintain the stock levels?
Till the ‘Recall’ date’
What if I fail to maintain the stock levels?
It is your contractual obligation under the TROT sales agreement
Non-maintenance of the stock level would be a material breach of contract
It would be result into forced recall of the all the TROT products
On recall, the default compensation becomes due and immediately payable
What is ‘Recall date’?
If the Floating stocks is fully exhausted, the developer has to buy back all the outstanding TROT products of that category
The developer declares a date on or after which he will buy all the outstanding TROT products
That date is called ‘Recall date’
The ‘Recall date’ will be at a period not less than one month notice period
The notice period is a ‘ window of opportunity’ offered to the TROT holders to buy the threshold stocks under the TROT terms
What is ‘TROT period’?
TROT period is the period within which the project is expected to be completed
It can be 3 years to 7 years depending on the project
It is declared before any TROT products are offered for sale
Will I lose on increase in the property rates?
To illustrate, it is like selling today at Rs. 10,000 per ft2 or selling at Rs. 18,000 after 5 years
If effective cost of funding or opportunities cost of the cash flow are considered, you would prefer to sell it today at Rs. 10,000/-
Chapter viz. ‘Developers’ Benefits’ of ‘TROT Realty – A Complete Solution’ provides analysis with tables to illustrate the various benefits in detail
Can any TROT holder ask for delivery of a flat/shop/office space?
Yes, any time after the ‘buy-date’
But then he needs to hold the number of TROT products of the category equal to the built-up ft2 area of the unit
He would surrender them to you for its extinguishment
Thus, any TROT holder holding the required number of TROT products can ask for the delivery
What if I fail to deliver?
You are liable to pay compensation
The compensation amount would be the market rate per built-up ft2, or
An amount computed at 18% p.a., yearly compounded, from the date of sale of the TROT product
How do I pay the compensation?
By deposit of the aggregate amount due in the ‘TROT Recall Deposit bank account
Respective banking accounts of the TROT holders would be credited
The TROT products stand extinguished on payment of the compensation
Do I have to sell all my project areas under the TROT at the same rate?
No.
There can be different rates for residential, commercial and office spaces
There can also be different rates for prime and non-prime areas within a project
You can sell different categories of TROT products for each of such areas
Each such category would have different selling rates and pre-fixed rates
Is there any limit on sale of the number of TROT products?
Yes.
A limit would be set based on certain variables
It would be about one product per sq. ft. covering 65% of the saleable built-up area
It can be calculated per category of the built-up area separately
When can I sell TROT products?
After execution of TROT sales Agreement with TROT Realty
You can any time thereafter provide TROT Data Sheet to generate TROT products of different categories for sale
Register the same on TROT e-com platform
Your TROT products are on sale
When can I sell TROT products?
After execution of TROT sales Agreement with TROT Realty
You can any time thereafter provide TROT Data Sheet to generate TROT products of different categories for sale
Register the same on TROT e-com platform
Your TROT products are on sale
How do I sell TROT products?
We buy all your TROT products
We retail them with direct credit to your bank account for each such re-sale
E-com platform ensures that your bank account is directly credited
D-mat transactions ensure that TROT products with unique ID are only sold.
All transactions are transparent and you will have free access to all
What are the applicable taxes?

No tax is payable on buy/sale of TROT products by you
It does not attract VAT or Transaction tax or Service tax or Excise duty
Tax deducted at Source (TDS) provisions do not apply for buy/sale of TROT products
How do I get money for the TROT products sold?

All the payments will be made through a reputed payment gateway company
All transactions are real time transactions
Your sales realization is credited to your bank account directly from each TROT sale transaction
What are my costs?

You need to pay up-front on account of registration of the project under TROT
The amount will be displayed on-line on data entry of your project details
If you decide to withdraw, the up-front amount will be refunded without interest
We promote re-sale of your TROT products at our cost
Your additional cost is the difference between the TROT selling rate and the compensation amount as and when paid on its recall
You may have notional loss in terms of the difference between the market rate and the ‘pre-fixed rate’, to be reduced by the TROT sale proceeds already realized
Detailed all-inclusive cost estimations would be provided on-line on registration of your project
Who approves my project?

For registration of your TROT products on our e-com platform, your need to obtain:
Project rating from CRISIL
Legal due diligence report from a law firm nominated by us
Technical due diligence including saleable built-up area certification from an architect firm nominated by us
Respective costs for the same to be paid by you
The reports will be up-loaded by the concerned agencies directly
TROT Realty will enter into TROT purchase agreement with you
TROT buying rate, stock levels will be provided to you on-line for your acceptance
Is there a market for TROT products?

Household investor support is expected for every TROT product on sale
Please view ‘Investor Benefits’ to appreciate the market
We promote sale of your stocks through our pan-India network of 50,000+ agents
Do you guarantee sale of TROT products?

We do not give the guaranteeers

TROT products are sold on the strength of your project
USPs of the product attract investors with different needs
We guarantee our transparent workings and our promotion inputs.
What is your marketing/promotion strategy?

A strong pan-India network of 50,000+ agentsmers
Agents are from amongst sub-brokers, senior insurance agents, financial advisors, property brokers and MBA (Marketing/Finance) grads
Every agent to have a minimum number of retail household investors registered under him
Attractive agency commission and incentives are offered
Special promotion campaigns for every new realty projects covered under TROT terms
About 1% of the TROT sale value would be spent on promotion campaigns
Reputed advertisement agency services are being roped in for strategizing and execution of the promotion campaigns
What if there are no buyers?

Unlikely considering our pan-India large network of TROT agents and registered customers
The TROT products are first offered to our network of Trade Partners for bulk sales
They are promoted for sale to our registered customers
You have option to recall all unsold stocks any time after one month
Proportionate amount of the up-front amount paid to us will be refunded to you
How secured is your e-com platform?

Access to your account is subject to user name and password
The transactions will be executed after mandatory confirmations
Many additional advanced algorithm based safety measures are provided
We have most advanced security system to protect against hacking and system failure
The system will be operated on a cloud processing platform of HP, a global IT giant
All the transactions data will be maintained in data vault of NSDL
It will guarantee that to no transaction data can be deleted or altered
What happens if the platform ceases to exist?

Very unlikely
We shall be entering into a long term contract with a major software company to maintain it
All TROT transactions are evidenced by a TROT Transaction Note as a proof of a legally enforceable transaction
Is TROT Realty a ‘Realty Fund’?

No
We do not collect and manage any investment
We only trade in TROT products. Buy in bulk as a sole buyer for its
We provide our buy-back assurance to ensure ready market for the products
Can I sale TROT products in UD$ / Euro?

Yes, for its sale to NRIs and PIOs
Compensation payment would also be required to be made in the same currency.
It is permissible under FEMA and RBI master circulars