Fractional investing refers to the ability to purchase a fraction of a full share of stock or other financial instrument, rather than being required to buy whole units. It enables investors with limited capital to gain exposure to high-priced stocks — for example, a share of MRF Ltd trading at ₹1,50,000 — by investing a smaller amount and owning a proportional fraction of the share. In India, fractional investing in domestic listed shares is not yet permitted under the current regulatory framework, where NSE and BSE require trades to be executed in whole share quantities. However, fractional investing in US stocks is available through several Indian fintech platforms such as Vested, Stockal, and INDMoney, which pool investor orders and hold fractional shares in their own names as nominees. SEBI is exploring regulatory frameworks for fractional ownership in the domestic context, particularly for real estate investment through fractional ownership platforms (FOPs) and for international equity access.
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