Sebi issues clarification on Hindenburg charge linked to Madhabi Buch's husband
14-Aug-2024The firm further alleged that after Dhaval’s appointment at Blackstone, Sebi proposed, approved, and facilitated major changes to the REIT regulations, specifically benefiting firms like Blackstone.
The Securities and Exchange Board of India (Sebi) on Sunday, in a detailed statement, rejected Hindenburg Research's allegations that Sebi's changes to the Real Estate Investment Trust (REIT) rules benefited a multinational company where Sebi Chairperson Madhabi Buch's husband Dhaval Buch was employed.
Sebi, the regulator of the securities market in India, stated that changes to the REIT rules are made after thorough consultation to ensure proper transparency, and described the allegations as "inappropriate".
The US short-seller firm Hindenburg Research, on Saturday, alleged that during Madhabi Buch’s tenure as a whole-time member at Sebi, her husband Dhaval Buch was appointed as a senior advisor to Blackstone, a multinational financial conglomerate, despite his lack of experience in real estate or capital markets.
However, Sebi in its statement countered the Hindenburg report's claim saying, "At no time has Dhaval been associated with the real estate side of Blackstone.”
The firm further alleged that after Dhaval’s appointment at Blackstone, Sebi proposed, approved, and facilitated major changes to the REIT regulations, specifically benefiting firms like Blackstone.
Rejecting these allegations, Sebi said, the REIT Regulations, 2014, “has been amended from time to time".
"As with all cases involving the introduction of a new regulation or amendment to an existing regulation, a robust consultation process for seeking inputs and feedback of the industry, investors, intermediaries, the relevant Advisory Committee and the public at large is in place," Sebi said in a statement.
