The Securities and Exchange Board of India (SEBI) has issued a detailed statement refuting allegations made by Hindenburg Research regarding the involvement of SEBI Chairperson Madhabi Buch’s husband, Dhaval Buch, in changes to Real Estate Investment Trust (REIT) rules.
SEBI’s Response:
- Consultation Process: SEBI clarified that any changes to REIT regulations are made only after thorough consultation with the industry, investors, and other stakeholders to ensure transparency.
- Regulations: The REIT regulations, introduced in 2014, have been amended over time, following a rigorous process that includes input from the relevant Advisory Committee and public feedback.
- Transparency: SEBI emphasized its commitment to transparency, noting that the agenda papers and outcomes of Board meetings are publicly available on its website.
Hindenburg’s Allegations:
- Claim: Hindenburg Research alleged that during Madhabi Buch’s tenure at SEBI, her husband was appointed as a senior advisor to Blackstone, despite having no experience in real estate or capital markets. The firm claimed this appointment influenced SEBI’s amendments to REIT regulations, favoring Blackstone.
- SEBI’s Rebuttal: SEBI rejected these claims, stating that Dhaval Buch had no involvement with Blackstone’s real estate activities. The regulator further asserted that promoting REITs was part of a broader strategy to develop the Indian securities market, not to benefit any single entity.
Internal Safeguards:
- Conflict of Interest: SEBI highlighted its robust internal mechanisms to address conflicts of interest, including a disclosure framework and provisions for recusal in cases of potential conflicts.
SEBI’s statement aims to dispel any doubts about the integrity of its regulatory processes, emphasizing that all decisions are made in the best interest of the market and not influenced by individual or corporate interests.
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SEBI