Sebi chief Buch refuses to comment on REITs amid conflict of interest allegations

SEBI Chief on REITs: Sebi chief Madhabi Puri Buch avoided speaking on Real Estate Investment Trusts-REITs, to avoid accusations of conflict of interest. The statement is against the backdrop of a recent accusation of US short-seller Hindenburg Research, which questioned her impartiality as her husband was a senior advisor with Blackstone-a leading player in the REIT market. 

"If I say the word REITs, I am accused of conflict of interest," Buch said at an event organised by the Confederation of Indian Industry on Monday

Allegations by Hindenburg Research had also said that Sebi's recent amendments to the 2014 REIT regulations were aimed at benefiting a particular financial conglomerate. Sebi and the couple have denied those allegations.
REITs are relatively new in the Indian market, while globally they find a lot of favour due to the returns that are on offer, with probable capital appreciation. These are essentially investing instruments that typically consist of a portfolio of leased commercial real estate assets.

The controversy had taken a turn as the Congress party, on Monday, had also charged Buch with additional conflict of interest allegations and asked Prime Minister Narendra Modi, being the head of the appointments committee of the cabinet, to clarify her appointment. Congress, in a press conference, claimed Buch, since taking office in 2017, has continued to receive income from the ICICI Bank while serving as Sebi Chairperson, hence, holding an office of profit.
Sebi has not yet reacted to these latest charges by the Congress party.

Last week, Buch pointed out an encouraging response to the implementation of regulations for small and medium REITs (SM REITs), which have just been implemented by Sebi to draw in more interest for fractional ownership in real estate assets.