Dhaval Buch's Blackstone role predates Madhabi Buch's SEBI appointment; Blackstone was on Madhabi's recusal list

Madhabi Puri Buch, Chairperson, SEBI

Blackstone was promptly added to Madhabi Buch's recusal list at SEBI to avoid any potential conflicts of interest, according to a joint press statement released by Madhabi Buch and her husband Dhaval Buch. Dhaval Buch's appointment as Senior Advisor to Blackstone Private Equity in 2019 was based on his extensive expertise in supply chain management and it predated his wife Madhabi Puri Buch's appointment as SEBI Chairperson. Dhaval Buch's role has been publicly known and he has never been involved with Blackstone's real estate sector.

Recent allegations from Hindenburg Research have brought attention to SEBI Chairperson Madhabi Puri Buch's connections and raised concerns about possible conflicts of interest related to SEBI's regulatory changes affecting the real estate investment trust (REIT) sector.

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The report highlighted that Blackstone, a major player in India's REIT sector, saw regulatory changes during Madhabi Buch's tenure that allegedly favoured the firm. This includes the approval of Blackstone-sponsored REITs like Embassy, Mindspace, and Nexus Select Trust.

These also included seven consultation papers on REITs, three updates to the Master Circular on REITs, new regulatory frameworks for micro, small, and medium REITs, and new board nomination rights for unit holders like Blackstone.

A real estate investment trust (REIT) is an investment vehicle that owns revenue-generating real estate or infrastructure assets. The US-based short-seller stated that Dhaval Buch, who spent most of his career at consumer goods giant Unilever, joined Blackstone as a Senior Advisor in July 2019 despite never having "worked for a fund, in real estate or at a capital markets firm".

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Dhaval Buch's LinkedIn profile highlighted his experience in procurement and supply chain management. It showed no prior involvement in the financial sector, real estate, or capital markets, Hindenburg pointed out.

The US-based short seller highlighted that during industry conferences, Madhabi Buch has touted REITs as her "favourite products for the future" and even urged investors to look "positively" upon the asset class. While making those statements, she omitted to mention that Blackstone, who her husband advises, stands to gain significantly from the asset class, it alleged.

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