What is TROT product?
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It is a freely tradable product representing one square ft built-up area in a realty project
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Its holder has an option to buy a realty unit in future on the TROT terms and at a pre-fixed rate |
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It is a unique realty retail hedge product offering good returns, safety & liquidity |
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A person can buy even one TROT product at a time and build his/her stock over a period or, |
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He/she can resale it in the market at any time to liquidate his/her investment |
How is it freely tradable?
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A TROT unit can be bought and sold on TROT e-trade platform just like gold on commodity market or any share or debenture on a share market
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It is traded in d-mat format |
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Just enter user name and password and deal in TROT products on-line |
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All payments are assured through a secured payment gateway |
Who sells TROT products?
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Developer of the realty project sales its TROT products
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You can resale it any time through TROT e-Trade Platform |
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TROT product is backed by certain guarantees and warrantees as per the TROT terms |
How TROT products are priced?
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It is decided by the market – a demand and supply function
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It is expected to be present value of the compensation receivable on a future date. It may be discounted by (say, average bank fixed deposit interest X 120 %) for the period till the future ‘Buy-date’ |
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This TROT product market rate will be further adjusted by the property market rate movement by a factor linked to the threshold stock % as specified for each category of TROT products |
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Justified price with detailed computations is available for every category of the TROT products |
How TROT holder buys a flat under TROT terms?
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Select the property you wish to buy
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Its cost, drawings along with the number of TROT products required and the ‘pre-fixed amount’ to be paid to acquire it under TROT terms will be displayed
• If you are short, buy from the market (Select ‘Buy/sale Trot’ from the menu) and then offer the same for surrender as above |
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Surrender the No of TROT products (Equal to sq ft built-up area of the flat) through TROT e-Trade Platform to the developer |
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Contract the developer for execution of the property purchase agreement and pay the pre-fixed price to the developer directly |
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Stamp duty, registration charges and other charges as specified in the TROT terms are additional |
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No shock of unspecified charges or of sudden additional demands |
When a TROT holder can buy a flat under TROT terms?
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Any time after the ‘Buy-date’ as already specified for each category of the TROT products
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But before the TROT products are ‘Recalled’ by the developer against payment of the compensation |
What if the developer does not deliver the flat?
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Very unlikely if threshold built-up areas are still in stocks as per TROT records
If undelivered in spite of availability of the threshold stock, the developer will pay you within a week the compensation will be amount being:
Add: Maximum selling rate achieved by the developer for the category of the property covered under the TROT products
Less: Pre-fixed amount for the flat you were supposed to pay for the flat
If you do not receive the compensation within a week, lodge a complaint with us
We will follow the required legal course
Meanwhile, we have insurance cover to protect you from any loss
Your compensation payment will be paid within a week from the date of lodging of the complaint
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Will built-up areas be reserved for sale under TROT terms?
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Yes
A minimum threshold built-up area is reserved for each category of TROT products
It is displayed in ‘Project Details’ as well in ‘TROT Product details’
Or you can just enter your TROT product no in the search and all details are displayed
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What if TROT holder does not wish to buy a flat?
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Any time after the ‘Recall day’ you can claim the compensation
Even before that you can just sale your TROT products
You surrender your TROT products to claim the compensation through TROT e-Trade Platform
You need not approach any developer to claim the compensation
It is simple and just a few clicks are required
Your compensation amount is credited to your bank account the same day
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What are the warrantees and guarantees?
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Flat chosen by you out of the available floating stock will be delivered on payment of the pre-fixed price under the TROT terms
If the developer defaults, he shall pay you a compensation based on market rate of the property
If the developer fails to pay the compensation, TROT Trading shall buy the TROT products at the market rate
The developer shall recall all the outstanding TROT products of a category within a reasonable time after the Buy-date
The developer shall recall the TROT products against payment of compensation
TROT Realty shall always ensure Payment Gateway tie-up for immediate and direct credits to your bank account
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What is ‘Pre-fixed’ rate?
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It is the additional amount you will be required to pay to acquire a flat under TROT terms
It is shown as Rs per sq ft of built-up area
It is fixed and disclosed by the developer at the time of the first sale of the TROT products
To acquire a flat, surrender the number of TROT products (equal to built-up ft2 area of the flat) and pay the pre-fixed price depending on the area of the flat
Pre-fixed rate is disclosed as part of details of each category of TROT products
Pre-fixed rate saves you from any increase in the property rates in future when want to buy a flat The rate is fixed irrespective of the market rate
So, it is a method to provide you a hedge cover
TROT product purchase cost + ‘pre-fixed rate’ = Your rate for purchase of the flat
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What is TROT Floating Stock level?
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A developer will maintain a % of built-up area of every category as ‘Floating stock
You can view the Floating Stocks for each category of TROT products as a part of the TROT Product details
TROT Realty has an effective system to verify and update the floating stocks on daily basis
The developer can sale the areas from the Floating Stocks in the market only under certain conditions
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What is TROT Threshold Stock level?
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It is a part of the Floating Stock that cannot be sold other than to TROT product holders on TROT terms
The developer can sale it in the market only after he has issued ‘Recall’ notice and has deposited the total compensation amount in the Recall Deposit Bank Account
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How long the stock levels are maintained?
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Floating Stock and Threshold Stock levels as reduced by:
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The area sold in the market against deposits in the Recall Deposit Bank Account |
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Areas sold under TROT terms to TROT product holders |
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Shall be maintained by the developer till the Recall Date |
What if the developer fails to maintain the stock levels?
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He shall deposit the compensation payable per TROT product for every sq ft shortfall in the Floating stock to be maintained in the Recall Deposit Bank Account
If he fails to:
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Deposit the amounts at any time; or |
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Fails to maintain the Threshold Stock level |
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All the TROT products sold by him any time earlier will be forced to be recalled for payment of
compensation to its holders
We will follow the required legal course
Meanwhile, we have insurance cover to protect you from any loss |
What is ‘Recall date’?
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A date declared by the developer on or after which TROT products can be returned back against payment of the compensation
The date shall always be after the ‘Buy-date’
Period between the ‘Buy-date’ and ‘Recall Date’ can be called as a window of opportunity
A TROT holder can be acquired property under the TROT terms during this period
The window of opportunity will be for a minimum period of three months
It may exceed and can be 2 years depending on the terms of sale of the TROT products
The terms are displayed as part of the TROT product details
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What is ‘TROT period’?
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It is the period from the date of first sale of the TROT products till the ‘Buy-date’
Normally it is the period during which the built-up stocks would be ready for delivery
In other words, it is the period required to execute the project
It can be any period, say, 3 years or 5 years (Normally not to exceed 5 years)
It is declared at the time of first sale of the TROT products
It is displayed as part of the TROT product details
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How the compensation is fixed?
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It is fixed per TROT product for every category of the TROT products
It is declared at the time of the first sale of the TROT products
In certain categories of TROT products, it would be linked to the market rates of the properties as on the ‘Recall-date’
It is declared before sale of any TROT product
It is displayed as part of the TROT product details
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How do I collect the compensation?
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TROT e-Trade Platform will display your TROT products due for claiming the compensation
You will also get regular reminders
Just select the TROT products to be surrendered for compensation and confirm using TROT e Trade Platform
Your compensation will be credited to your bank account the same day or next day out of the Recall deposit Account of the developer
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Is there any limit on buying of the TROT products?
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No
You can buy 1 or any number of TROT products as available in the market for sale
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When can one sell TROT products?
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Any time at your choice
Log in to TROT e-Trade Platform and select TROT products to be sold
Confirm the sale
Your sale consideration will be credited to your bank account the same day or next day
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How do I sell TROT products?
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Just log-in to TROT e-Trade Platform
Select ‘Buy/sale TROT Products’
Select TROT products you want to sale and confirm the sale
It is sold
Your sale consideration will be credited to your bank account the same day or the next day
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What are the applicable taxes?
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At present no taxes are applicable
TROT Realty will keep you informed from time to time of any taxes as may become applicable in future
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How do I sell TROT products?
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Just log-in to TROT e-Trade Platform
Select ‘Buy/sale TROT Products’
Select TROT products you want to sale and confirm the sale
It is sold
Your sale consideration will be credited to your bank account the same day or the next day
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How do I get money for the TROT products sold?
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TROT Realty has arrangement with a secured payment portal
All deposits and credits are made to a designated account
No amount can be withdrawn by TROT Realty or any party other than availed by the payment portal for payment of the amount/s due under any TROT transaction
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What is the cost of transacting of TROT e-com platform?
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Presently it is free
A transaction fee may be charged in future
It will be restricted to the amount required to recover direct expenses incurred/to be incurred for execution of the transaction
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How do I pay the purchase consideration?
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You may deposit to the designated bank account by cash, cheque, credit/debit card, internet banking transfer
For payment through cheque, it should be accepted by the counter party to the transaction as an acceptable mode of payment
In case of cheque payment, TROT products would stand transferred in your name on realization of the cheque
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Is there a market for TROT products?
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Secondary market for TROT is actively promoted by the large global network of TROT agents
The buyers would be those interested in investment for good returns or interested in buying the project properties
TROT Realty expects ready market for all categories of TROT products
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Do you guarantee sale of TROT products?
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No
A large global network of TROT Trade Partners would function as Market Makers of the TROT products
As a Market Maker, they would provide ready ‘buy-bids’ for different categories of TROT products
They will buy any TROT products offered for sale
The purchase rate will be TROT system generated
Its computation will be displayed along with the bid offer
Market maker support at any time will be for a minimum 10% of the total value of TROT products sold
Most of the household TROT product holders would be holding it as a long term investment or for buying of any project property in future
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What if there are no buyers?
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Very unlikely
In such worst scenario, you may end up holding the TROT products till its recall date on which it can be surrendered for compensation
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Can I buy TROT products in foreign currency?
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Yes, but only by non-residents
A non-resident can buy TROT products in any free foreign currency
He can sell the TROT products and remit the money in foreign currency to his account
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Do you offer foreign currency TROT products?
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A developer may offer TROT product in foreign currency denomination
It can then be purchased only in foreign currency
It can be sold only against payment in foreign currency
The compensation amount shall also be paid in foreign currency
It would help you eliminate any risk of adverse foreign exchange fluctuation
You can search for Foreign Currency TROT products offered by different developers
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