Will get accused for conflict of interest if I say anything on REIT: Sebi chief Buch

Sebi chief Madhabi Puri Buch

SEBI Chairperson Madhabi Puri Buch sidestepped a discussion on real estate investment trusts (REITs) at a Confederation of Indian Industry event, observing that any statement she made might prompt conflict of interest allegations.

“But these days if I utter the word REITs, I am accused of conflict of interest. So, perhaps it would be better for me to abstain,” Buch said at the CII event in Mumbai on September 2.

Last month, the Sebi chairman faced scrutiny after US-based short seller Hindenburg Research had alleged that Buch had a conflict of interest with Blackstone as her husband Dhaval Buch was appointed as an advisor to the global asset management company, which is a major investor in Real Estate Investment Trusts (REITs). The appointment came during Buch’s tenure at the markets regulator, the short seller had alleged.

During industry conferences, Sebi chair touted REITs as her “favourite products for the future” and urged investors to look “positively” upon the asset class, alleged Hindenburg, adding, “While making those statements, she omitted to mention that Blackstone, who her husband advises, stands to gain significantly from the asset class”.

SEBI, on its part, refuted Hindenburg’s allegations that amendments to Real Estate Investment Trusts (REITs) regulations were intended to benefit major financial conglomerates such as Blackstone. The regulator said that it has consistently highlighted the role of REITs, SM REITs, InvITs, Municipal Bonds, etc, to advance the Indian securities market.

Buch and her husband, too, denied the allegations levelled by Hindenburg Research.

“In the context of allegations made in the Hindenburg Report dated August 10,2024 against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report. The same is devoid of any truth. Our life and finances are an open book. All disclosures as required have already been furnished to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them,” the couple said in the joint statement.