What is TROT product?
It is a freely tradable product representing one square ft built-up area in a realty project
Its holder has 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 or,
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 on TROT e-trade platform just like gold on commodity market or any share or debenture on a share market
It is traded in d-mat format
Just enter user name and password and deal in TROT products on-line
All payments are assured through a secured payment gateway
Who sells TROT products?
Developer of the realty project sales its TROT products
You can resale it any time through TROT e-Trade Platform
TROT product is backed by certain guarantees and warrantees as per the TROT terms
How TROT products are priced?
It is decided by the market – a demand and supply function
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’
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
Justified price with detailed computations is available for every category of the TROT products
How TROT holder buys a flat under TROT terms?
Select the property you wish to buy
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
Surrender the No of TROT products (Equal to sq ft built-up area of the flat) through TROT e-Trade Platform to the developer
Contract the developer for execution of the property purchase agreement and pay the pre-fixed price to the developer directly
Stamp duty, registration charges and other charges as specified in the TROT terms are additional
No shock of unspecified charges or of sudden additional demands
When a TROT holder can buy a flat under TROT terms?
Any time after the ‘Buy-date’ as already specified for each category of the TROT products
But before the TROT products are ‘Recalled’ by the developer against payment of the compensation
What if the developer does not deliver the flat?

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
Will built-up areas be reserved for sale under TROT terms?

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
What if TROT holder does not wish to buy a flat?
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
What are the warrantees and guarantees?
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
What is ‘Pre-fixed’ rate?
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
What is TROT Floating Stock level?
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
What is TROT Threshold Stock level?
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
How long the stock levels are maintained?
Floating Stock and Threshold Stock levels as reduced by:
 
·
The area sold in the market against deposits in the Recall Deposit Bank Account
·
Areas sold under TROT terms to TROT product holders
Shall be maintained by the developer till the Recall Date
What if the developer fails to maintain the stock levels?
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:
 
·
Deposit the amounts at any time; or
 
·
Fails to maintain the Threshold Stock level
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’?

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
What is ‘TROT period’?

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
How the compensation is fixed?
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
How do I collect the compensation?
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
Is there any limit on buying of the TROT products?
No

You can buy 1 or any number of TROT products as available in the market for sale
When can one sell TROT products?
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
How do I sell TROT products?
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
What are the applicable taxes?
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
How do I get money for the TROT products sold?
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
What is the cost of transacting of TROT e-com platform?
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
How do I pay the purchase consideration?
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
Is there a market for TROT products?
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
Do you guarantee sale of TROT products?
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
What if there are no buyers?
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
Can I buy TROT products in foreign currency?
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
Do you offer foreign currency TROT products?

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